ASIC has disqualified Mr Peter Brennan, of Bangor, New South Wales, from being an approved Self-Managed Superannuation Fund (SMSF) auditor.

ASIC disqualified Mr Brennan after finding the work he performed in auditing three SMSFs for 2011 and 2012 to be deficient. In particular, 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.

Concerns about Mr Brennan's conduct were referred to ASIC by the Australian Tax Office (ATO) under the SIS Act.

ASIC Commissioner John Price said, 'As the SMSF sector continues to grow in popularity with Australian investors, it is critical that approved SMSF auditors perform their role adequately. ASIC will continue to work with the ATO in acting to identify and remove auditors whose audit quality performance falls short.'

Background

From 1 July 2013, the SIS Act required all auditors of SMSFs to be registered with ASIC. The objective was to ensure that all SMSF auditors at least meet the base standards of competency and expertise.

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 disqualification or suspension of their registration.

There are about 6,700 registered SMSF auditors in Australia. SMSF trustees and members can check whether their auditor is registered by searching ASIC's SMSF auditor register at connectonline.asic.gov.au.