During the second half of 2024, ASIC took action against the registration of 17 approved self-managed superannuation fund (SMSF) auditors. This is in addition to the announcement that ASIC suspended 3 high-volume auditors in October 2024 (24-241MR).
ASIC took this action because it found breaches across the following areas:
- professional obligations of approved SMSF auditors, such as complying with auditing and assurance standards, the auditor independence requirements, continuing professional development requirements or holding a current policy of professional indemnity insurance,
- annual statement non-compliance, or
- SMSF auditors ceased to have the practical experience necessary for carrying out SMSF audits.
SMSF auditors are responsible for providing assurance on assets worth $1 trillion held in over 638,000 SMSFs. SMSF auditors are trusted gatekeepers that contribute to the integrity and confidence in the SMSF regime. ASIC will continue to take action where SMSF auditor conduct is deficient.
Between 1 July 2024 and 31 December 2024, ASIC:
- disqualified 4 SMSF auditors
- imposed additional conditions on 2 SMSF auditors, and
- cancelled the registration of 11 SMSF auditors.
Joseph Badawy, Gareth Evans, Vjekoslav Fak and Ryan McGrath were disqualified from being SMSF auditors. Joseph Badawy and Vjekoslav Fak requested ASIC reconsider its disqualification decision and the disqualifications in each case were confirmed.
Brent Connor and Sam Danieli had additional conditions imposed on their SMSF auditor registrations. A full list of the conditions imposed can be accessed by searching the SMSF auditor’s name in ASIC's Professional Registers Search.
The SMSF auditor registrations of Evan Bekiaris, David Bromet, Judy Chu, Denis Ford, Bruce Mackley, Michael Mazza, Geoffrey Page, Anthony Richards, Michel Schoers, Wayne Tilley and Grace Wong were cancelled by ASIC in connection with the Australian Taxation Office (ATO) project identifying auditors with insufficient practical experience. ASIC is empowered to cancel the registration of SMSF auditors that do not perform any significant audit work during a continuous period of 5 years.
All SMSF auditors were referred to ASIC by the 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. The order disqualifying a person from being an approved SMSF auditor must be published by notifiable instrument detailed in the Notifiable ASIC instruments listing. A disqualified SMSF auditor is placed on ASIC’s public banned and disqualified register and is not eligible to reapply for registration unless the disqualification is revoked. Suspension orders are not notifiable instruments, however the approved SMSF auditor status in the register will show ‘suspended’ during the time of suspension.
ASIC may impose conditions on an SMSF auditor’s registration under section 128D of the SIS Act at any time by giving written notice. ASIC may cancel the registration of an SMSF auditor under section 128E of the SIS Act for non-compliance with conditions, ceasing to have the practical experience necessary for carrying out audits of SMSFs, failing to lodge annual statements in the required timeframe or ceasing to be an Australian resident.
SMSF auditors have the right to seek review of decisions that ASIC makes in relation to their registration 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 ART for further review of the confirmed or varied decision.
Further information can be found on ASIC's SMSF auditors webpage and in Regulatory Guide 243 Registration of self-managed superannuation fund auditors.
Anyone can search for a registered SMSF auditor and their current status by checking ASIC's Professional Registers Search.