Specialist SMSF audit firms Evolv and AuditMatch have formed an alliance that will see them working together to provide a solution for accounting firms having to rearrange their practices as a result of the amended auditor independence standards.
The agreement will see both organisations involved in establishing pooling arrangements for the existing audit activities of accounting firms also providing non-assurance services to SMSFs.
Under these arrangements, the SMSF audits of the accounting firms in the pool will be distributed and relocated among one another.
Specifically, AuditMatch will introduce like-minded firms to a pooling arrangement and the practices in the pool will in turn have access to the EvolvWhite SMSF audit software to help them drive business profitability.
“By combining our resources we are supporting accounting and advisory firms in the countdown to independence on 1 July,” Evolv chief executive Ron Phipps-Ellis said.
“Over recent weeks we have received a growing number of ‘mayday’ calls from SMSF accountants looking for alternative ways to satisfy the demands of APES 110.
“Through our alliance with AuditMatch, we are now providing support to pooling arrangements, which is something Evolv has not previously engaged in.”
AuditMatch is currently in the process of seeking independent advice to ratify the legality of the pooling arrangements it is endeavouring to offer.
“This is a significant investment, but one that we believe will give the accounting profession the ability to comfortably move forward in achieving audit independence,” AuditMatch director Peter Johnson said.
“One advantage of using the AuditMatch system is that when you sign up you are agreeing to a third-party adjudicator for the inevitable conflicts that will arise when using an external auditor.
“If there is a conflict initially, I will adjudicate and if that is still not acceptable, then there will be a ruling applied for the incorrect party paying for the ruling.”