ASIC takes action against six SMSF auditors

Oksana Patron

30 November 2022

The Australian Securities and Investments Commission (ASIC) has acted against six self-managed superannuation fund (SMSF) auditors for breaches of independence requirements and auditing standards.

Between June and September, 2022, the regulator disqualified three SMSF auditors from being registered, imposed additional conditions on the registration of one SMSF auditor and cancelled the registration of two SMSF auditors.

This included Khanh Huynh, of Leumeah, New South Wales, Hafiz Saroha, of South Granville, New South Wales, and Janette Townshend, of Templestowe, Victoria, to be disqualified from being an SMSF auditor in June and August, respectively.

Further to that, Yaw Boadi, of Constitution Hill, New South Wales, had additional conditions imposed on his registration in September 2022 for breaching Australian auditing and assurance standards and ASIC cancelled the SMSF auditor registration of Brian Carroll, of Miranda, New South Wales, in July 2022 for failing to lodge with ASIC an SMSF auditor annual statement and for not meeting the following additional conditions imposed on his registration.

ASIC said that five of these SMSF auditors were referred to it by the Australian Taxation Office (ATO) and the actions resulted from breaches of obligations including auditing and assurance standards, independence requirements, and registration conditions, or because ASIC was satisfied the individual was not a fit and proper person to remain registered.

“SMSF auditors have a fundamental role in promoting confidence in the SMSF sector. ASIC will apply a range of regulatory tools against SMSF auditors who fail to meet the independence and auditing standards or whose conduct calls into question the integrity of SMSF audits,” ASIC Commissioner Sean Hughes said.

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 and is not eligible to reapply for registration.

Approved SMSF auditors are registered with ASIC under the Superannuation Industry (Supervision) Act 1993 (SIS Act).

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 (AAT) for further review of the decision.