When an accountant does an audit there are rules that force the accountant to ensure that they are independent of the accounts they are auditing. Recently the rules were changed around
independence for SMSF Auditors.
Traditionally, where an auditor and an accountant were part of the same network or accounting firm, they could only audit a fund that was part of the same network/firm whereby the auditor could demonstrate that they were still acting independently of the accountant.
But from the 1st July 2021, SMSF auditors are no longer able to audit a fund where the accounts have been prepared by either the same firm or network of firms.
This means that up to 300,000 SMSFs have had to appoint a new auditor this financial year.
This will also impact the trustees of those funds as they now have to formally engage a new auditor and then get used to the requirements of that new auditor.
Have questions about your auditor? Contact me on 0432 366 690.