SMSF auditor disqualified by ASIC

Peter Brennan, of Bangor, New South Wales, has been disqualified after ASIC found the work he performed in auditing three SMSFs for 2011 and 2012 to be “deficient”.

In a statement, ASIC said Mr Brennan failed to obtain sufficient appropriate audit evidence about the funds’ compliance with the Superannuation Industry (Supervision) Act 1993 (the SIS Act) and consequently a number of significant contraventions were not identified by him.

Mr Brennan also failed to provide written audit reports to the funds, the regulator said.

Concerns about Mr Brennan's conduct were first referred to ASIC by the ATO under the SIS Act.

ASIC commissioner John Price said the regulator is keeping a keen eye on the SMSF audit space to ensure auditor quality meets a high standard.

“As the SMSF sector continues to grow in popularity with Australian investors, it is critical that approved SMSF auditors perform their role adequately,” Mr Price said.

“ASIC will continue to work with the ATO in acting to identify and remove auditors whose audit quality performance falls short.”

ASIC and the tax office work together as co-regulators of SMSF auditors, with the ATO monitoring SMSF auditor conduct and where appropriate referring matters to ASIC for possible disqualification or suspension of their registration.

There are about 6,700 registered SMSF auditors in Australia.