The SMSF audit industry could witness increased contraction and consolidation should the triennial audit cycle policy proposal be legislated, an auditor has warned.

An SMSF Association member survey has found significant opposition toward the proposed introduction of a three-year audit cycle for SMSFs with a good compliance history.

Auditors have been told to take away the practical lessons learnt from the recent outcome of a court decision where an SMSF auditor was found to be liable for losses as well as acting negligently.

A survey of SMSF professionals has revealed a change to triennial audits could compromise the protection of vulnerable trustees’ super retirement benefits.

Practitioners must carefully consider the future of their SMSF audit proposition in light of the proposed triennial audit cycle and the continuing developments in audit platforms and technology, according to a professional services consultancy.