Hi Sandeep,

From what I've been told, ATO officer will call and identify three client audit files they have selected for review. They will give you a set time to provide the audit files to them - potentially as little as 3 days. They will conduct the review/audit of the audit files and try to find deficiencies or errors, and then might ask you to explain the reasons for any issues.

In addition to review the audit files, they may check your CPD log to ensure you've undertaken the sufficient number of hours of CPD and check your insurance.

An important consideration is why they have selected the auditor for a review. If it is because you are a high-volume auditor, conducting hundreds of audits per year, then they will want to scrutinise your internal processes and quality control measures in particular. If you are selected for review because they think you do not lodge enough contravention reports or charges very low fees, or are breaching independence requirements, they view you as a "high-risk" auditor and are looking for any deficiencies across all aspects of your work and practice.

Once they finalise their findings, they will either tell you of any deficiencies found and give you a warning if they are minor issues; or they will refer the matter to ASIC. ASIC would then either impose conditions on the auditor's licence, or terminate their licence if the matters are serious.

If they contacted you already, did they say why they will be conducting an audit/review?

Let me know if you have any questions, I have experience in dealing with a tax agent review/audit (ATO reviewed a firm I used to work at as a tax agent), and I can tell you the ATO officers can be very aggressive in their approach, but there are ways to fight against their tactics.

Thanks Jason

Could you please share your contact details

Regards

Sandeep

Hey Jason

Would love to know more about your experience!