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Paul Coonan

May 04, 2022

Edited: May 04, 2022

Audit rotation / independent review for sole trader with funds > 10 years

in SMSF Technical Forum

I am a Sole Trader SMSF Auditor and I have some funds that I have been auditing for 10 years. According to the new independence requirements an audit rotation is required I believe. In a large firm it is possible to give the audit to another partner and then after they have undertaken one audit year, you could resume auditing the fund with their feedback and recommendations to go forward with.

The rules don't seem to cater for someone in my situation as a sole trader in terms of audit rotation. I believe I can have an independent review done for one audit year and then resume auditing the funds. I have run this by the audit clients and they are prepared to pay for such an independent review. However, I can't find anyone offering this service. I presume there are other auditors in my situation.

Please let me know of any of your experiences and any information that might help me out.

Thanks,

Pablo

2 answers2 replies

Comments (4)

THE AUDITORS INSTITUTE

May 12, 2022

Hi Pablo

2 auditors / firms that offer the independent review service are:

Hilton Miller

Director

LDB Group

Suite 3‑9, 1‑3 Albert St

Blackburn Victoria 3130

P: (03) 9875 2900 e: hmiller@ldb.com.au

Sharif Eldebs

Principal

SMSF Auditor

Registered Company Auditor

Assured Super

832 High Street, East Kew VIC 3102

Tel: (03) 9249 9669

sharif@assuredsuper.com.au

www.assuredsuper.com.au

Thanks

Rohan

Paul Coonan

May 17, 2022

Replying to

Thanks very much Rohan.

THE AUDITORS INSTITUTE

May 09, 2022

Hi Pablo

Yes agreed the APESB Independence Guide from May 2020 at example 13 (re SMSF's) refers to an auditor auditing XYZ SMSF for in excess of 10 years and no internal or external independence review having been undertaken.

In the guide they refer to applying safeguards being:

"Appropriate safeguards to address self-interest and familiarity threats include (para 540.3 A6):

• having an appropriate reviewer not involved in the audit to review the auditor’s work.

• performing regular independent internal and external quality reviews of the engagement.

As a minimum, it is considered to be best practice after auditing a fund for 10 years that an internal or external independent review of the audit be undertaken."

There are a number of firms that I am aware of that can do a review of your audit work. Can you please let me know what state you are based in & I will try & refer you to a state based firm that can assist.

Also if other auditors are offering this service please advise.

Thanks

SMSF AAA

Paul Coonan

May 09, 2022

Replying to

Thanks for the reply. I double checked the rules this morning and agree with your comments. I am in NSW but also live in QLD sometimes. I think with everything electronic these days anyone could probably do it. I would appreciate any referrals to suitable firms.