The ATO has confirmed what may threaten auditor independence when a large volume of business comes from a single referral sources.

Auditors have responded positively to an ATO call for data regarding SMSF auditor number misuse, providing more insight into errors related to the annual audit process.

Auditing firms enlisting the accounting services of other businesses to comply with the amended auditor independence standards should proceed with caution, the ATO says.

Audit pooling arrangements to sidestep restructuring costs and comply with new audit independence standards carries many risks, the ATO has noted in new guidance.