The concept of materiality has been acknowledged by the ATO as a difficult one for auditors to manage with regard to SMSF investment strategies.

A breach of the sole purpose test is being used too often as the justification for lodging an auditor contravention report.

SMSFs with loans that lack evidence of how they can be recovered are likely to be red-flagged by auditors seeking to protect themselves from legal action.

Practitioners working towards an audit qualification will now have a tier of SMSFAAA membership tailored for their situation.