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I am auditing one Accounting firm’s few SMSF clients – Can I audit main Accountant’s personal SMSF ? ( this Accounting Firm not related with any other work with me or my audit Firm) Is there any auditor Independency Issue ?
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Hi Md
I believe it is common that an auditor would audit a number of Fund's for an accounting firm and also audit the main accountant (or Partners) personal SMSF.
The threat to independence in your example is "self-interest" & "intimidation".
These threats are explained in the Independence Guide (APESB & CA & CPA & IPA).
The Independence Guide was issued in May 2020. Chapter 8 is in relation to SMSF’s.
The guide has a number of examples that assist auditors in understanding their responsibilities in complying with APES 110.
Example 6 is below & that provides guidance.
As auditor you must evaluate the threats to independence and eliminate these to an acceptable level or not accept the appointment.
If other forum members have a view please let the forum know.
Thanks
SMSF AAA