ASIC Cracks Down on SMSF Auditors

ASIC Takes Action Against 28 SMSF Auditors: What This Means for Accounting Firms

The Australian Securities and Investments Commission (ASIC) has recently announced regulatory action against 28 SMSF auditors, highlighting a continued focus on audit quality, compliance and independence across the sector.

For accounting firms working with SMSF clients, this update is an important reminder of the regulatory expectations placed on auditors and the increasing scrutiny being applied.

At Superannuation Audit Services, we review these updates closely to help our clients stay informed and compliant.

ASIC Action Across the SMSF Audit Sector

According to ASIC, action was taken against 28 SMSF auditors between 1 July 2025 and 31 December 2025.

This included:

• 22 auditor registrations cancelled • 4 auditors disqualified • 2 auditors had additional conditions imposed on their registration 

These outcomes reinforce ASIC’s role in maintaining standards across the SMSF audit profession.

Key Reasons for Regulatory Action

ASIC identified several breaches of professional obligations that led to regulatory action.

These included:

• Failure to comply with auditing and assurance standards • Independence breaches • Failure to meet continuing professional development requirements• Not holding professional indemnity insurance • Failure to lodge required annual statements • Not updating contact details or responding to regulatory requests • Insufficient audit work to meet practical experience requirements

For accounting firms, these findings highlight the importance of working with auditors who maintain strong compliance processes and professional standards.

Increased Focus on Audit Independence

ASIC has also flagged increased scrutiny on in house audit arrangements, where an auditor reviews SMSFs that their own firm has also provided accounting services to.

The regulator confirmed that:

• Auditors are prohibited from auditing SMSFs where their firm prepares the financial statements, unless the services are routine or mechanical and independence threats are appropriately addressed • Independence breaches remain a key area of concern

ASIC also noted that some auditors continued this practice even after conditions were imposed on their registration.

This reinforces that independence is not just a requirement but a key enforcement priority.

Ongoing ATO and ASIC Collaboration

ASIC and the Australian Taxation Office continue to work closely as co regulators of SMSF auditors.

The ATO monitors auditor conduct and may refer matters to ASIC, while ASIC has the authority to:

• Disqualify auditors • Cancel registrations • Impose conditions on registrations

This coordinated approach ensures ongoing oversight of the SMSF audit sector.

What This Means for Accounting Firms

For accounting firms, this update highlights several key considerations:

• The importance of engaging independent SMSF auditors • The need to avoid in house audit arrangements that may breach independence requirements • Ensuring auditors meet all professional and regulatory obligations • Working with auditors who maintain consistent audit quality and documentation standards

With regulators actively identifying and addressing non compliance, selecting the right audit partner is more important than ever.

Supporting Strong SMSF Audit Outcomes

At Superannuation Audit Services, we are committed to maintaining highest standards of independence, compliance and audit quality.

We work with accounting firms across Australia to provide independent SMSF audits, helping support strong governance outcomes and reduce compliance risk.

If it's time to rethink your SMSF audit arrangements, book a FREE no-obligation consultation with the experienced Superannuation Audit Services team. 

View ATO media release

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Disclaimer: This communication is for general informational purposes. For tailored advice specific to your firm’s circumstances, please contact us directly