The Australian Securities and Investments Commission (ASIC) has added conditions to the registration of two auditors of self-managed superannuation funds (SMSFs), William Krammer and Yuk Wong.
Kramer, of Victoria, had conditions imposed for auditor independence breaches and audit quality deficiencies, including not obtaining engagement letters, trustee representation letters and sufficient appropriate audit evidence to support the ownership and market value of assets.
He would be required to:
- Take additional training on SMSF audits and ethics;
- Sit and pass the SMSF auditor competency exam;
- Certify his independence to ASIC periodically;
- Have three SMSF audits reviewed by an ASIC approved independent quality reviewer; and
- Advise his professional body of the conditions.
Wong, of NSW, had conditions imposed for auditor independence breaches and audit quality deficiencies including not obtaining engagement letters, trustee representation letters, and sufficient appropriate audit evidence in relation to trust deeds, investment strategies, asset ownership and valuations, borrowing arrangements, rental income and related parties.
He would be required to:
- Complete additional training and on SMSF audits and ethics;
- Sit and pass the SMSF auditor competency exam;
- Provide evidence of his compliance with continuing professional development requirements;
- Review and revise tools and templates used to perform and documents SMSF audits; and
- Advise his professional body of the conditions.
If any of these conditions were breached, ASIC may disqualify or suspend their registration as an SMSF auditor.
