Super funds not responsible for auditors

The Association of Superannuation Funds of Australia (ASFA) has told the Australian Prudential Regulation Authority (APRA) that superannuation funds should not be expected to take responsibility for whether auditors do their jobs properly.

In a submission to APRA responding to a consultation paper on audit and related matters, ASFA suggested that asking a superannuation fund to take responsibility for such matters went beyond what could reasonably be expected.

"ASFA considers that Registrable Superannuation Entity (RSE) licensees are not in a position to be responsible for whether auditors undertake their roles properly," the submission said. "Auditors are members of a professional association. With the possible exception of an extreme dereliction of their responsibilities, an RSE licensee is not able to assess whether the auditor has performed their audit work in accordance with the Auditing and Assurance Standards Board (AUASB) standards."

The submission recommended that the regulator amend its wording around the guidance with respect to auditors to impose on superannuation funds only a need to "use all reasonable endeavours" to ensure auditors complied with their terms of engagement.