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Manita Seeder

Mar 12, 2021

Auditor Independent

in SMSF Technical Forum

We have an external auditor, he has audited one of our client's smsf for 8 years.

Can he continue to audit the same client? or is there a limit imposed by the authority?

2 comments

Comments (2)

Manita Seeder

Mar 21, 2021

Thank you for your clarification.

THE AUDITORS INSTITUTE

Mar 15, 2021

Hi Manita.

Yes the external auditor can audit the SMSF even though he / she has done it for the last 8 years.

The rotation of auditor requirements (5 out of 7 years rule) apply to Public Interest Entities (PIE) (such as listed entities and APRA regulated entities). A SMSF is not considered to be a PIE.

Given the auditor has audited the Fund for 8 years this may present self-interest & familiarity threats to them being able to continue to do the audit (refer APES 110 Code of Ethics for Professional Accountants (including Independence Standards).

If there are independence concerns then if the auditor's firm is big enough the audit could be given to another auditor at the firm. Another option could also be to engage an independent reviewer to review the work done by the auditor.

Thanks

SMSF AAA