IPA SEEKS ANSWERS OVER PROPOSED CHANGE TO SMSF AUDIT CYCLE

IPA SEEKS ANSWERS OVER PROPOSED CHANGE TO SMSF AUDIT CYCLE

The Institute of Public Accountants (IPA) is working with Minister O’Dwyer and the Treasury over the proposed change to the audit cycle of Self-managed Superannuation Funds (SMSFs).

“We need to understand the policy rationale for the proposal to move to three-year cycles for SMSF audits,” said IPA chief executive officer, Andrew Conway.

“How does reducing the audit cycle enhance regulatory oversight and transparency in the SMSF sector?

“We know, that now more than ever, in the financial services space, sunlight is the best disinfectant. Without an annual SMSF auditor oversight, how will the regulator of the SMSF sector, monitor compliance?

“These issues go far beyond the impact on SMSF auditors and speak to the very confidence and transparency of the SMSF sector.

“Arguments around compliance costs are myopic at best as trustees are likely to be required to have a three year audit at greater total cost than the current (12 month) review. Will the unsubstantiated audit cost-saving be worth the significant risks such a measure introduces?” said Mr Conway.