A supposedly “independent” Auditor is engaged to protect the interests of the Members and Beneficiaries of every Government Regulated Superannuation Fund.
The Auditor is paid for his or her services from the assets of the Fund and not out of the Trustee’s own pocket. However the Auditor is appointed by the Trustee and a cosy relationship can develop between the Trustee and the supposedly “independent” Auditor with the same Audit Partner remaining in place for many years.
Ninety percent of Auditors come from the Big Four accounting firms:
- Ernst & Young
As well as conducting an audit of the financial statements, the “independent” Auditor is required to certify that the Trustee has complied with all prescribed regulatory requirements as specified on the Section 35C report to the Prudential Regulator – APRA
However it has become apparent from the results to date of Australia’s first Superannuation Industry Disclosure Compliance Test that many Auditors are just “rubber stamping” the Part 2B Compliance Report.
This should be a concern to all Members and Beneficiaries of Funds where the “independent” Auditor is not actively seeking to protect their interests.
Australian Guardians is collating a list of “Red Flag” Audit Partners who are not adequately completing the Part 2B Compliance Report.
Australian Guardians will be lobbying Politicians to break these cosy relationships.
The Audit Rotation Policy is for Audit Partners to be rotated every three years and for Audit Firms to be rotated every six years.
Australian Guardians will be seeking the support of Members to lobby Politicians for these urgently need reforms.
When there is $1 Trillion of other peoples’ money up for grabs Members and Beneficiaries should have full confidence in the “independent” Auditor engaged to protect their interests.
Australian Guardians – Protecting your wealth when no one else will®