Penalties can be imposed on SMSF auditors if they contravene the following sections of the Superannuation Industry (Supervision) Act 1993 (SISA). Depending on the section that is contravened, the penalties can be either monetary or imprisonment.
Section 35C(6) – An auditor fails to provide the audit report to the trustees within the prescribed period.
Sections 129(3) – An auditor fails to inform trustees and the ATO of:
- contraventions identified during an SMSF audit, or
- the fund‘s unsatisfactory financial position identified during an SMSF audit.
Sections 129(3B) & (3C) – An auditor (the first auditor) is aware of a matter that must be told to the ATO and a trustee, and the first auditor:
- tells another auditor that they have told the ATO and a trustee about the matter, and
- has not told the ATO and the trustee about the matter.
Section 131B(2) – A person holds themselves out as an approved SMSF auditor and is not an approved SMSF auditor.
Section 131C – A person who is or acts as an approved SMSF auditor and has been disqualified or suspended by the Australian Securities & Investments Commission (ASIC).