The ATO completed over 200 SMSF auditor reviews in the 2025 financial year and referred 41 practitioners to the Australian Securities and Investments Commission (ASIC) for compliance action.
“The main reason for a referral was due to an auditor failing to comply with the auditing and assurance standards. Most auditors reviewed did not obtain sufficient and appropriate audit evidence to form an opinion on the fund’s financial statements and compliance with the super laws,” the regulator said in an update on its website.
Failing to meet the independence requirements by conducting in-house audits and failing to demonstrate they had the necessary practical experience to carry out SMSF audits were another two reasons auditors were referred to ASIC.
In addition to the referrals, 36 auditors voluntarily cancelled their ASIC registrations during the ATO’s review process.
A further 51 auditors received targeted guidance to assist them in specific obligations regarding market valuations and disqualified trustee reviews.
Subsequent to the regulator’s examination, auditor contravention report lodgements have risen from 2.2 per cent to 3.6 per cent.
The most common compliance issues the ATO identified were a lack of evidence to support that transactions were at arm’s length, assets were correctly reported at market value, no charges existed over SMSF assets and the fund’s limited recourse borrowing arrangement had met the borrowing exceptions. Unsigned financial statements in auditors’ files was also an issue.
The regulator said it would keep a strong focus on high-risk auditors, those conducting in-house audits and practitioners who may be failing to conduct adequate compliance checks in relation to ensuring trustees value their assets at market value each year.
The ATO also said there was no change in the SMSF independent auditor’s report on its website and professionals can still use the current version of this document for the 2025 income year as part of their procedures.
