| 1-51248119247 |
Dec. 23, 2021 |
Undertaking - charges |
9. In relation to the charges against the approved SMSF auditor (identified in the auditor''s 2020 and 2021 annual statements) that are listed for hearing in June 2022, the approved SMSF auditor must notify ASIC in writing of the outcome of the case within one week of any decision by the court. The auditor must notify ASIC of any change to the charges or the hearing date within one week of the change having been made. |
| 1-51248119246 |
Dec. 23, 2021 |
Undertaking - audit program |
10. The approved SMSF auditor must have completed in all of their SMSF audit files an audit program that includes audit procedures requiring the auditor to: (a) send an annual engagement letter that communicates to the trustees'' (i) the trustees'' responsibility under subsection 35C(2) of the SIS Act to provide to the auditor documents requested by the auditor within 14 days of the request and (ii) the auditor''s responsibility to report contraventions of subsection 35C(2) to the ATO. (b) Conclude on whether the trustees have provided all requested documents and have complied with subsection 35C(2) of the SIS Act. |
| 1-51248119245 |
Dec. 23, 2021 |
Review tools, templates and methodology and SMSF audits |
11. The approved SMSF auditor must, within three months from the date of this condition being imposed, engage an ASIC approved independent SMSF auditor reviewer to undertake a review of their SMSF audit tools, templates and methodology and a review of three selected SMSF audit files. The review is to assess compliance with relevant SMSF auditing and assurance standards. (a) Within one month from the date of this condition being imposed the approved SMSF auditor must provide the name and contact details of an independent SMSF auditor reviewer to ASIC to consider and approve. (b) The reviewer is to provide written observations to the approved SMSF auditor and the approved SMSF auditor is to provide written responses, including actions to address any issues raised. The reviewer''s written comments and the approved SMSF auditor''s response is to be provided to ASIC within 4 months of this condition being imposed. (c) The approved SMSF auditor must have three SMSF audits for the financial year ended 30 June 2021 (or year-end otherwise agreed by ASIC) reviewed by the reviewer. (d) Within six months from the date of this condition being imposed the approved SMSF auditor must provide a list of all SMSFs that they are the appointed auditor for the financial year ended 30 June 2021. The list is to include information such as the net assets of the SMSF and dates the SMSF audit was commenced and completed. ASIC will then choose three SMSF audits that the approved SMSF auditor will submit for review. (e) The reviewer will provide a statement in writing to ASIC within 60 days of receiving the three SMSF audit files for review, detailing the scope of their review, any significant deficiencies identified, and whether in the reviewer''s opinion, based on their review, the SMSF audits have been conducted in accordance with the applicable Australian Auditing Standards and the SIS Act. These reviews are to be conducted at the approved SMSF auditor''s expense. |
| 1-51248119244 |
May 16, 2013 |
Professional indemnity insurance requirements |
2. The approved SMSF auditor must at all times maintain a professional indemnity insurance policy which either: (a) complies with the level set under a limitation of liability scheme provided by a professional organisation; or (b) has a minimum insured amount of $500,000 together with adequate policy terms covering civil liability claims in respect of SMSF audits. |
| 1-51248119243 |
May 16, 2013 |
Notifications to ASIC |
1. The approved SMSF auditor must notify ASIC of any change in those matters which are required to be notified under section 128H of the SIS Act. |
| 1-51248119242 |
Dec. 23, 2021 |
Notification to professional body |
14. [INCREMENT1[LEVEL1] Within one month of these further conditions being imposed, the approved SMSF auditor must provide: (a) a copy of the letter formally imposing these conditions to the IPA for them to be aware of the conditions for any future compliance monitoring activity in relation to the auditor, such as practice reviews; and (b) evidence to ASIC that the letter has been provided to the IPA. |
| 1-51248119241 |
May 16, 2013 |
Continuing professional development requirements |
3. The approved SMSF auditor must complete at least 120 hours of continuing professional development (CPD) training every three years, which must include 30 hours of training on superannuation, of which at least 8 hours of training is about auditing of SMSFs. 4. The approved SMSF auditor must keep a written record of their participation in CPD activities, which must be kept for at least three years after the end of the calendar year in which the activity took place. |
| 1-51248119240 |
May 16, 2013 |
Compliance with competency standards |
5. The approved SMSF auditor must comply with any competency standards published by ASIC under section 128Q of the SIS Act. |
| 1-51248119239 |
May 16, 2013 |
Compliance with auditing standards |
8. The approved SMSF auditor must document, maintain and comply with auditing standards made by the Auditing and Assurance Standards Board under section 336 of the Corporations Act 2001 that are applicable to the duties of an SMSF Auditor. |
| 1-51248119238 |
May 16, 2013 |
Compliance with auditing and assurance standards |
7. The approved SMSF auditor must document, maintain and comply with auditing and assurance standards made by the Auditing and Assurance Standards Board under section 227B of the Australian Securities and Investments Commission Act 2001 that are applicable to the duties of an SMSF Auditor. |
| 1-51248119237 |
Dec. 23, 2021 |
Competency exam - nine months |
13. Within nine months of the conditions being imposed the approved SMSF auditor must sit and pass, on their first attempt, ASIC''s approved SMSF auditor competency exam (referred to in section 128C of the SIS Act). The auditor must provide to ASIC within one week of completing the exam, evidence of the successful completion and passing of the SMSF auditor competency exam. |
| 1-51248119236 |
May 16, 2013 |
Auditor independence requirements |
6. The approved SMSF auditor must comply with auditor independence requirements produced by the Accounting Professional and Ethical Standards Board Limited set out in the APES 110 Code of Ethics for Professional Accountants. |
| 1-51248119235 |
Dec. 23, 2021 |
Additional continuing professional development - nine months |
12. The approved SMSF auditor must undertake the following additional continuing professional development (CPD) within nine months from the date the conditions are imposed, which is in addition to the CPD required under s128F(a) of the SIS Act: (a) Successfully complete a course of study (of at least seven hours) in relation to the requirements of an SMSF audit, including SIS Act requirements. The course is to be provided by Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia (CPA) or The Institute of Public Accountants (IPA), or a provider otherwise agreed by ASIC. (b) Prior to enrolment into the course of study, the approved SMSF auditor is to provide ASIC with details of the course outline and the course provider. (c) Within nine months and one week of the conditions being imposed the approved SMSF auditor must provide evidence to ASIC of their completion of the course. |
| 1-51248119234 |
Sept. 28, 2022 |
Audit restriction |
15. The auditor shall not sign an auditor''s report for, or be engaged to audit, an SMSF until such time that: (a) the auditor provides ASIC a suitable plan for how they will address the conditions imposed on 16 December 2021 that remain outstanding in any way. The plan must include how and when the conditions will be met; and (b) the auditor provides ASIC a medical certificate stating specifically that they are fit to conduct SMSF audits and to action the plan to address their outstanding conditions. The plan provided to ASIC is also to be provided to the relevant medical practitioner providing the certificate; and (c) ASIC provides the auditor, in writing, their agreement to the plan to meet outstanding conditions and their acceptance of the medical certificate. Once ASIC has agreed to the plan, the SMSF auditor shall meet that plan. |