What are the professional obligations of an approved SMSF auditor?

In Plain English

If you're an approved SMSF auditor, you have several responsibilities to maintain your professional standing and ensure the quality of your work. These include:

  • Keeping your skills up-to-date by completing ongoing professional development.
  • Having professional indemnity insurance to protect against potential claims.
  • Following competency standards set by the Regulator.
  • Adhering to auditing standards established by the Auditing and Assurance Standards Board.
  • Maintaining auditor independence as required by regulations.
  • Providing an annual statement to the Regulator.
  • Notifying the Regulator of any significant changes in your circumstances, such as ceasing to practice, changing contact details, or no longer being an Australian resident.

Detailed Explanation

An approved SMSF auditor has several professional obligations outlined in the Superannuation Industry (Supervision) Act 1993 and related regulations. These obligations are crucial for maintaining the integrity and quality of SMSF audits.

Specifically, section 128F of the Superannuation Industry (Supervision) Act 1993 details the professional obligations of approved SMSF auditors:

  • Continuing Professional Development (CPD): Auditors must complete the CPD requirements prescribed by the regulations (Superannuation Industry (Supervision) Regulations 1994 regulation 9A.04). This involves undertaking at least 120 hours of CPD every 3 years, including 30 hours on superannuation, with at least 8 hours specifically on SMSF auditing. The development must enhance the auditor's technical skills or professional service delivery. Auditors are also required to keep written records of their CPD for at least 3 years after the end of the financial year in which the development occurred.
  • Professional Indemnity Insurance: Auditors must hold a current policy of professional indemnity insurance at a level prescribed by the regulations (Superannuation Industry (Supervision) Regulations 1994 regulation 9A.05). The insurance should adequately cover claims that may arise from their SMSF audits, with coverage of at least $500,000 for a single claim or in aggregate.
  • Compliance with Standards: Auditors must comply with:
  • Auditor Independence: Auditors must comply with the auditor independence requirements prescribed by the regulations (Superannuation Industry (Supervision) Regulations 1994 regulation 9A.06), which refers to the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board Limited.

In addition to these professional obligations, section 128G of the Superannuation Industry (Supervision) Act 1993 requires approved SMSF auditors to provide annual statements to the Regulator within 30 days after the end of each 12-month period following their registration.

Section 128H of the Superannuation Industry (Supervision) Act 1993 requires auditors to notify the Regulator within 21 days of certain events, such as ceasing to practice as an SMSF auditor, ceasing to be an Australian resident, or changes in registered particulars or contact details.