ASIC takes action over SMSF audit breach
The Australian Securities and Investments Commission (ASIC) has disqualified Abe Samuel from being approved as a self-managed superannuation fund (SMSF) auditor on the grounds of a breach in auditor independence requirements.
The breach contravened auditor independence requirements of APES 110 Code of Ethics for Professional Accountants where Samuel was:
- a member of a fund he audited and also the director of its corporate trustee; and
- the power of attorney holder for, and a relative of, a member of a fund he audited.
Information about Mr Samuel was first referred to ASIC by the Australian Taxation Office under section 128P of the Superannuation Industry (Supervision) Act 1993 (known as the SIS Act).
From 1 July 2013, the SIS Act required all auditors of SMSFs to be registered with ASIC, to ensure that they met the base standards of "competency" and "expertise".
According to ASIC, Samuel was found to have been "not a fit and proper person" to be an approved SMSF auditor, and his failure to comply with the independence requirements was the determining factor behind ASIC's decision.
"It is critical that approved SMSF auditors perform their role adequately and meet professional standards to promote confidence in the SMSF sector," ASIC Commissioner John Price said.
"ASIC will continue to follow up matters referred by the ATO concerning the quality of SMSF auditors."
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