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ASIC targets 2 SMSF auditors over misconduct

The corporate regulator has imposed conditions on the registrations of two SMSF auditors following concerns relating to auditor independence breaches.

SMSF Miranda Brownlee 22 September 2020
— 1 minute read

In a public announcement, ASIC said it has added conditions to the registration of two SMSF auditors, William Krammer of Victoria and Yuk Wong of NSW.

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ASIC said its decision to impose conditions on Mr Krammer related to auditor independence breaches and audit quality deficiencies, including not obtaining engagement letters, trustee representation letters and sufficient appropriate audit evidence to support the ownership and market value of assets.

“The conditions imposed require Mr Krammer to complete additional training on SMSF audits and ethics, sit and pass the SMSF auditor competency exam, certify his independence to ASIC periodically, have three SMSF audits reviewed by an ASIC-approved independent quality reviewer, and advise his professional body of the conditions,” ASIC said in its statement.

The reasons for imposing conditions on Mr Wong by ASIC also related to auditor independence breaches and audit quality deficiencies, including not obtaining engagement letters, trustee representation letters and sufficient appropriate audit evidence in relation to trust deeds, investment strategies, asset ownership and valuations, borrowing arrangements, rental income and related parties.

“The conditions imposed require Mr Wong to complete additional training on SMSF auditing and ethics, sit and pass the SMSF auditor competency exam, provide evidence of his compliance with continuing professional development requirements, review and revise tools and templates used to perform and document SMSF audits, and advise his professional body of the conditions,” ASIC stated.

Information about the two auditors was referred to ASIC under section 128P of the Superannuation Industry (Supervision) Act 1993 (SIS Act).

“ASIC and the ATO work closely together as co-regulators of SMSF auditors. The ATO monitors SMSF auditor conduct and may refer matters to ASIC for possible action such as disqualification or suspension of their registration. ASIC may also impose conditions on SMSF auditors,” the corporate regulator said.

ASIC targets 2 SMSF auditors over misconduct
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