A member wonders how a competency standard fits with CPD obligations.
SMSF auditors take note
Q. Why did CPA Australia, in conjunction with other professional bodies, develop a competency standard regarding a proposed audit of self-managed superannuation funds? Are the competency requirements in addition to the present continuing professional development requirements required by CPA Australia?
A. CPAs are expected to display and maintain the appropriate knowledge and education for the work that they undertake as required by the relevant professional standards. This is especially prudent for practitioners providing public accounting services. Most of the training requirements contained in the proposed competency standard for auditors of SMSFs are presently relevant to and required of accountants preparing or auditing company accounts.
In brief, the competency requirements require auditors of SMSFs to demonstrate competencies in the following key areas:
client acceptance and retention
audit planning
controls evaluation and testing
substantive testing
forming an opinion
In order to address these areas adequately, members must be familiar with the Australian auditing standards, the Superannuation Industry (Supervision) Act 1993 and regulations, and the relevant Australian professional and ethical standards. Members will be required to complete a course in the audit of SMSFs prior to commencing auditing engagements. In addition, there will also be specific CPD requirements.
It is important to note that the competency requirements are not intended to be in addition to current member CPD obligations. These requirements will form a part of the present education and training requirements members are required to comply with.
Training undertaken by members in the current triennium (based on members' CPD triennium) will be considered as relevant. However, auditors should consider whether it is necessary to update skills and knowledge due to recent changes to the relevant legislation and standards. It is the intention that the monitoring of members' compliance with the competency standard will occur through CPA Australia's quality review program.
Prior to the release of the competency standard for consultation with members, relevant standard setters and regulators, in particular the ATO, have been consulted with extensively.
