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Mandy Carpenter

Mar 29, 2022

Edited: Mar 29, 2022

Accountant charging audit fees

in SMSF Technical Forum

Accountant Charging Auditing Fees

I have taken over the audit of several SMSF's for an accountant following deregistration of previous auditor, with the agreement that fees will remain as per previous year until 30 June. A particular accountant had an "arrangement" with the previous auditor to only charge $330 direct to the accountant, accountant would then charge SMSF for accounting and auditing work - audit fee $600 included in accountancy account. The additional charge for his staff to prepare documents for auditor. Personally I feel this is a conflict of interest and potentially breach of independence. Any thoughts/comments please????

2 answers0 replies

Comments (2)

Brian Roughley

Apr 12, 2022

I agree, I see no problem with the accountant paying the audit fee and claiming it back from the client as a disbursement. I would ensure that the audit invoice is addressed to the Trustee. Adding a mark up for whatever reason and covering it in the description "audit fee" seems to me a misrepresentation of the audit fee and a deception by the accountant. When the Fund pays the accountant's invoice the audit fee needs to be properly dissected in the Fund's financials less the "mark up".