The number of SMSF auditors servicing a high number of funds has remained stable, with three-quarters being reviewed by just over 10 per cent of practitioners, according to new ATO data.
The “SMSF annual statistics overview 2023-24” released last week showed 11.5 per cent of auditors, or 338 of the 2942 registered with the ATO, reviewed more than 250 funds in that financial year and accounted for 75 per cent of all SMSFs audited during that period.
These figures were consistent with previous years as during the 2023 financial year, 12 per cent of auditors examined 250 funds or more, accounting for 76.3 per cent of all funds, and during 2021/22, 11.2 per cent of auditors, dealing with 250 funds or more, accounted for 74.5 per cent of funds.
The next most prolific group were the 26.7 per cent of auditors who reviewed 50 to 250 funds, accounting for 19.4 per cent of all audits.
These figures were also generally consistent with previous years, but when compared against the declining numbers of auditors, down from 4773 in 2019/20 to 2942 in 2023/24, a pattern of concentrated work in the hands of a few practitioners appears.
While 8.6 per cent, or 410, of 4773 auditors conducted more than 250 audits, or 63 per cent of all those performed in 2019/20, that figure had shifted to 338 practitioners conducting more than 250 audits, or 75 per cent of all those performed, in 2023/24.
This was further evidenced by the fact the cohort of auditors performing five to 50 audits a year has remained relatively static at around 41 per cent for the past four years, representing around 5.5 per cent of all audits performed.
At the same time, auditors performing less than five audits per year has remained around 21 per cent for the past four years, accounting for 0.3 per cent of all audits carried out each year.
Average and median auditor fees were also static, with the average fee equating to $651, down a few dollars from the previous financial year, while the median remained unchanged over the past five years at $550.
A sizeable group, 37.1 per cent, charged less than the median, with their fee falling into the range of less than $499, while 52.1 per cent charged $500 to $999 for their services, while 9.5 per cent charged between $1000 and $1999, and only 1.3 per cent charged more than $2000.
The cost of audits, particularly those in the lower ranges, is an issue of concern for the ATO, which is seeking more data on the cost of audits and reviewing those performed in bulk and at low cost.
