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Brian Tice

Jul 19, 2021

Replacing auditor for same financial year

in SMSF Technical Forum

replaced as auditor in same financial year.?

i have audited and signed off a set of accounts which were lodged.

i have subsequently discovered that the the accounts and tax return were amended and signed off by a new auditor. (i believe the changes were significant)

despite numerous requests no information has been provided by the accountant or trustees to me.

the accountant has now emailed advice that a new auditor has been appointed and i have no further obligation? they will provide me with no further information citing the privacy act.

What are my obligations?

2 answers1 reply

Comments (3)

THE AUDITORS INSTITUTE

Jul 20, 2021

Hi Brian

Thanks, I would not think changing the auditor would normally trigger an ATO audit. The amended ITR could trigger an ATO audit depending on how it has changed. Agreed it is unusual the way you have been replaced.

It appears to me as you have been removed as auditor you have no further obligations. If your audit report raised any contraventions that required reporting to the trustees / ATO & you have done that then I cannot see any further obligations for you as an auditor.

Thanks

SMSF AAA

THE AUDITORS INSTITUTE

Jul 19, 2021

Hi Brian

It would be good to receive other member's views in relation to this issue. I have not come across such an issue before and arguably as you have been replaced as auditor you have no further responsibility in relation to the Fund.

You could consider lodging an audit contravention report (ACR) where you can provide additional information to the ATO where you can use your professional judgement. If you are concerned in relation to the way you have been replaced as auditor then lodging an ACR re the issue may be appropriate. You could consider writing to the trustees and explain your concerns and advise them that if a satisfactory explanation is not received then you would lodge an ACR with the ATO.

I am also interested if you received an ethical clearance request from the new auditor.

Thanks

SMSF AAA

Brian Tice

Jul 20, 2021

Replying to

thanks for reply.

I've received no ethical letter from new auditor.

note,I do a number of audits for the accountant and this is the only audit replaced.

i am concerned that the action of replacing auditor for amended accounts will trigger ATO audit of fund.

i am happy to walk away from this fund but would like to be sure i have met all my obligations.