Accounting firms providing administration and audit services for SMSFs must inform trustees of the potential need to appoint a new fund auditor due to the updated independence standards for those practitioners, an SMSF technical expert has said.
HLB Mann Judd superannuation director Andrew Yee pointed out many clients with SMSFs who were likely to be affected by the recently restructured APES 110 Code of Ethics for Professional Accountants may be unaware of the upcoming changes or how their funds would be impacted once the changes were implemented.
“[Many SMSFs may not know] why they need to change auditors. They normally rely on their adviser or their accountant as to who their auditor will be. Typically, they’re not involved,” Yee told selfmanagedsuper.
Given the significant number of SMSFs that were likely to be affected, firms would do well to keep their clients informed of the changes and what they should anticipate in terms of potential costs and delays, he pointed out.
“If 200,000 super funds have to find auditors, that’s going to create a bit of upheaval,” he added.
“[It may] increase costs for those super funds. If they’re used to having their funds audited by their accountant or someone involved with their accountant, then there could be delays involved. It will have an impact.”
Last week, the ATO stated it would not be enforcing the new auditor independence standards for the 2021 financial year and will instead allow a transition period for accounting firms and auditors to adjust to the changes.
Earlier this month, ATO SMSF auditor portfolio director Kellie Grant cautioned practitioners looking to establish a breakaway company to continue to perform SMSF audits for clients serviced by their former employer that such a move was unlikely to be considered a successful strategy to adhere to the new auditor independence standards.
