New independence requirements for SMSF auditors will drive hundreds of thousands of funds to seek a new auditor as the ATO seeks greater separation of services.

Auditors will look for evidence trustees have reviewed their SMSF investment strategy in light of the significant events of 2020, an audit expert says.

Auditors must comply with a new guide’s standards to ensure SMSF auditor independence, the ATO says.

Auditors have upped their intensity since the ATO sent out letters last year questioning the investment strategies of SMSFs, a senior executive in the sector has said.

The internal controls of an SMSF need to be taken into account when performing an audit, regardless of the type of audit being carried out, a specialist practitioner has said.

SMSF auditors will have their work processes examined by the ATO after new guidelines were introduced governing the scope of their independence.