The Institute has been providing comment to the Australian Taxation Office’s (ATO) large auditing entity strategy, as part of its 2007/2008 compliance program on self managed super fund (SMSF) approved auditors. 
 
The ATO recognises that large audit practices cover a significant portion of total SMSF audits each year. In these practices there is heavy reliance on internal controls and review processes to ensure the senior audit partner/signatory is confident the firm has undertaken a satisfactory audit. There are a number of professional and auditing standards, which require many of these controls to be in place. 
 
The ATO’s strategy will take into consideration the effectiveness of these controls in the particular practice. This is part of the ATO’s compliance strategy to provide the ATO with the confidence that the large number of audits completed by these practices have been satisfactorily undertaken.  
 
The Institute’s ongoing work with the ATO reflects the integral role Chartered Accountants (and the Institute) have in the SMSF sector. The ATO’s strategy was announced by Ian Read, Assistant Deputy Commissioner of the ATO at the Institute’s SMSF Conference earlier this year.  
 
As it continues to grow, the Institute recognises the need for ongoing enhancements relating to compliance within the SMSF sector. Further, the Institute recently hosted an industry forum to discuss the key existing governance and regulatory framework of SMSFs. 
 
The Institute continues to work closely with the ATO providing both valuable technical and practical feedback and commentary on key superannuation issues and policies.  
 
Relevant links:

• The Institute: SMSF governance questionnaire