ASIC has taken action against 11 self-managed superannuation fund (SMSF) auditors, where conduct has fallen short and they have breached their obligations, in the quarter ending 30 September 2023. This included breaches of auditing and assurance standards, independence requirements and registration conditions.

ASIC Deputy Chair Sarah Court said, ‘SMSF auditors have a critical role in upholding the integrity of the SMSF sector through annual audits. They oversee over 610,000 SMSFs, representing more than $875 billion in funds. SMSF auditors play an essential role in supporting confidence in the SMSF sector, and ASIC will continue to take action where their conduct is inadequate.’ 

Between 1 July 2023 and 30 September 2023, ASIC:

• disqualified three SMSF auditors;
• imposed additional conditions on five SMSF auditors; and
• cancelled the registration of three SMSF auditors.

Carlo Celisano, Eamon Lynch and Brian Townhill were disqualified from being SMSF auditors. Their names have been placed on ASIC’s public banned and disqualified register and are not eligible to reapply for registration.

Anthony Boys, Laurence Carwardine, Gurjeet Singh, Bruno Sternberg and Mark Turner had additional conditions imposed on their SMSF auditor registration. Conditions are specific to the auditor (see the SMSF Auditor register), and can require undertaking additional professional development, passing the SMSF auditor competency exam, having independent reviews of SMSF audit files and/or audit tools, templates and methodology, performing independence threat and safeguard evaluation and notifying their professional accounting association of the additional conditions.

Jeffrey Leahy, James Ulrich and Lou Varalla had their SMSF auditor registration cancelled.

All 11 SMSF auditors were referred to ASIC by the Australian Taxation Office (ATO).

Background

Approved SMSF auditors are registered with ASIC under 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 can refer matters to ASIC. ASIC also monitors the SMSF auditor population for non-compliance and is empowered to disqualify, suspend, cancel or impose additional conditions on the registration of SMSF auditors.

ASIC may make an order disqualifying or suspending a person from being an approved SMSF auditor, under section 130F of the SIS Act, if the person has failed to carry out or perform adequately and properly the duties and functions of an auditor or is not a fit and proper person to be an approved SMSF auditor. A disqualified SMSF auditor is placed on ASIC’s public banned and disqualified register at connectonline.asic.gov.au and is not eligible to reapply for registration.

ASIC may impose conditions on an SMSF auditor’s registration under section 128D of the SIS Act, or may cancel the registration of an SMSF auditor under section 128E of the SIS Act for non-compliance with conditions or failing to lodge annual statements in the required timeframe.

SMSF auditors have the right to appeal decisions ASIC makes in relation to them under the SIS Act. They may request that ASIC reconsider a decision it has made against them. If the decision is confirmed or varied the SMSF auditor may apply to the Administrative Appeals Tribunal for further review of the decision.

Further information can be found on ASIC's website and in Regulatory Guide 243 Registration of self-managed superannuation fund auditors.

SMSF trustees and members can check whether their auditor is registered, suspended or has conditions imposed on their registration by searching ASIC's SMSF Auditor register.