The Australian Securities and Investments Commission (ASIC) took compliance action against 17 SMSF auditors in the latter half of 2024, removing 15 of them from operating in the sector following referrals by the ATO.
The corporate regulator stated it disqualified four auditors, imposed conditions on two more and deregistered 11 others between July and December 2024 after it identified breaches of professional obligations.
The breaches include non-compliance with auditing standards, auditor independence requirements and continuing professional development obligations, not holding a current professional indemnity insurance policy, annual statement non-compliance and ceasing to have the practical experience necessary for carrying out SMSF audits.
The specific individuals disqualified from acting as SMSF auditors were Joseph Badawy, Gareth Evans, Vjekoslav Fak and Ryan McGrath. Badawy and Fak requested ASIC reconsider its disqualification decisions, but the sanctions in both cases were confirmed.
Brent Connor and Sam Danieli had additional conditions imposed on their SMSF auditor registrations.
ASIC cancelled the SMSF auditor registrations of Evan Bekiaris, David Bromet, Judy Chu, Denis Ford, Bruce Mackley, Michael Mazza, Geoffrey Page, Anthony Richards, Michel Schoers, Wayne Tilley and Grace Wong in connection with an ATO project that identified auditors who did not have sufficient practical experience.
The regulator is empowered to deregister SMSF auditors who fail to conduct significant audit work for five consecutive years.
The disqualified auditors have been placed on ASIC’s public banned and disqualified register and are ineligible to reapply for registration unless the decision is revoked.
The disciplinary action follows on from ASIC suspending three auditors in October last year for breaching independence standards by receiving the majority of clients from a single source.
''