Accounting bodies support changes for SMSF auditors

Accounting bodies have supported the Government's proposed changes applying to auditors of self-managed super funds (SMSFs) as part of its Stronger Super package.

CPA Australia and the Institute of Chartered Accountants (ICA) have welcomed the Government's maintenance of a principles-based approach to independence standards for SMSF auditors.

CPA Australia senior policy adviser for superannuation Michael Davison said the decision to maintain a principles-based approach to independence standards was a win for common sense, as prescriptive standards cannot be applied in all situations and could lose relevance over time as services evolve.

"With reform, sometimes what's maintained can be just as critical as any new initiatives, and CPA Australia therefore welcomes the Government's decision not to proceed with setting prescriptive independence standards in recognition that the principles based approach remains the most effective," Davison said.

ICA head of superannuation Liz Westover said the announcement reinforced that the accounting profession's standard on professional ethics is the most appropriate platform for the provision of audit services within SMSFs.

The Assistant Treasurer and Minister for Financial Services Bill Shorten has also announced the period in which auditors must provide their report to SMSF trustees will be extended when the audit report cannot be provided on time due to certain circumstances beyond the auditor's control.

Currently, SMSF auditors are required to submit their report no later than the day before the SMSF trustees are required to lodge their annual return.

CPA also supports the registration of SMSF auditors, and said it believed it would be beneficial to the profession and the sector.