An increasing number of SMSF audits could be looking for a new auditor this year, as the profession continues to come to terms with the independence regime.
An independent audit requirement has been in place since last year and there is a growing realisation that price should not be the main determining factor in the selection of an auditor.
In chasing the best price, some accountants have found that the turnaround time and service outcome was not what they expected. Additional staff costs have been one of the chief contributing factors to the dissatisfaction, as accountants time is taken up managing the audit workflow. What appeared to be the cheapest audit option has in fact often turned out to have additional charges imposed.
Service delivery has been exacerbated by staffing issues, and some audit firms have taken on more work than they could handle. Wholesale auditors have prioritised their larger clients, which has caused delays in turnaround times.
Within the profession, there has been evidence of differing audit standards at work and audit pools have not been the solution.
What accountants are searching for is a quality independent SMSF audit relationship. Whilst price will be a relevant issue, decisions based solely on price are likely to not produce the end result accountants and their clients are after. Ensuring adequate capacity is in place is essential to a productive audit relationship.
There were concerns raised at the start of the new independence regime that too much of a concentration on cost would prove a problem for accountants and their SMSF clients.
That fear has eventuated for some, leading to a rethink around the choice of auditor.
For Accounting practices that are keen to operate in this space, there could be opportunities to increase SMSF audit numbers by capitalising on the expected migration of funds.
Hayes Knight has a dedicated SMSF audit and compliance team who work with other accounting firms to assist them with their client audit requirements. Got a question? Contact our SMSF team, call us on 02 9221 6666 or leave us a message.
