The Australian Securities and Investments Commission (ASIC) has increased its regulatory focus on self-managed superannuation fund (SMSF) auditors following rising concerns regarding audit quality and compliance failures across the sector.
Between 1 July 2025 and 31 December 2025, ASIC took action against 28 SMSF auditors. These actions included disqualifications, registration cancellations, and the imposition of additional conditions on auditor registrations.
Key Compliance Failures Identified
- ASIC’s enforcement activity has highlighted several serious breaches, including:
- Failure to comply with auditing and assurance standards, including inadequate audit work and insufficient practical experience.
- Independence breaches, particularly in situations where firms prepared and audited the same SMSF financial statements without appropriate safeguards.
- Administrative and regulatory failures such as not lodging annual statements, failing to maintain professional indemnity insurance, or not responding to ASIC correspondence.
Focus on Auditor Independence
ASIC has reinforced the importance of genuine auditor independence. SMSF auditors must remain objective and avoid conflicts of interest that could compromise audit quality.
In-house audit arrangements continue to attract scrutiny, particularly where accounting and audit functions are performed within the same firm without proper safeguards.
What Good SMSF Audit Practice Looks Like
- Robust SMSF audit practices should include:
- Maintaining clear independence policies and procedures.
- Ongoing professional development and technical training.
- Comprehensive audit documentation and workpapers.
- Timely compliance with ASIC reporting and registration obligations.
Implications for Trustees and Advisers
ASIC’s recent actions serve as a reminder that audit quality and regulatory compliance are non-negotiable. SMSF trustees and advisers should ensure that their appointed auditor is properly registered, independent, and able to demonstrate high-quality audit processes.
Strengthening governance and compliance frameworks within audit practices not only protects individual SMSF members but also reinforces confidence in Australia’s superannuation system.
How We Can Assist
Tax Navigators works closely with SMSF trustees and professional advisers to ensure compliance, governance, and reporting obligations are met. If you would like to review your SMSF audit arrangements or discuss best practice compliance frameworks, please contact our office.