Frequently asked questions about the new competency requirements for auditors of self-managed superannuation funds (SMSFs).

Q. Why was this framework developed — what was the basis for it?

A. CPA Australia, the Institute of Chartered Accountants in Australia and the National Institute of Accountants have developed a competency model for the auditors of companies. It was considered appropriate to extend this program to the audits of SMSFs to address concerns about the quality of some SMSF audits and to uphold the public interest in this growing area.

Q. Is every member expected to be a specialist in this area?

A. Members of CPA Australia, the Institute of Chartered Accountants in Australia and the National Institute of Accountants (NIA) are expected to display and maintain the appropriate knowledge and education for the work that they undertake as required by the relevant professional standards.

Most of the training requirements contained in the competency framework are presently relevant to accountants preparing or auditing company accounts. This is applicable regardless of the number of audits undertaken.

Q. Will a specialist designation be introduced for the audit of SMFSs ?

A. The professional bodies do not have any intention to do so at the present time. The standards and requirements currently pertaining to professional accountants are adequate as they stand.

Q. Considering CPA Australia, the Institute and NIA are professional bodies and not standards setters, is it appropriate for the bodies to be issuing a 'framework'?

The framework is an interpretation of the ethical standards and auditing standards and does not set an additional standard.

Q. How will the three professional bodies be monitoring their members' compliance with the framework?

A. Monitoring of members' compliance with the competency framework will occur through the quality review program. By issuing a clear framework setting out expectations, we anticipate a high level of compliance with the requirements.
  
Q. What will be the penalty, should an auditor breach any of the requirements?

A. The penalties will be those applied within the existing disciplinary process.

Q. Does the rest of the accounting industry support the proposed competency requirements, in particular, standard setters and regulators?

A. The relevant standard setters and regulators, in particular the ATO were consulted prior to the release of the competency frameworks for consultation with members.

Q. Are the requirements in addition to the present continuing professional development requirements required by the professional accounting body?

A. No, the competency requirements form a part of the present continuing professional development requirements.

Q. If I have undertaken relevant superannuation / SMSF / financial / compliance audit / financial accounting training recently, will this be taken into account?

A. Yes, training undertaken in the current triennium will be considered as relevant. However, auditors should consider whether it is necessary to update skill and knowledge due to recent changes to SIS, accounting and auditing standards.

Q. Will my personal assistant or someone doing work experience in my office have to do the training?

A. No, the auditor signing the audit report must comply with the competency framework. However the auditor must ensure that staff undertaking audit work on their behalf have appropriate training to undertake the delegated functions.

Q. Do my employees doing audit work have to hold a public practice certificate?
 
A. No. The auditor signing the audit report must hold a public practice certificate. However, the auditor must ensure that staff undertaking audit work have appropriate training to undertake the delegated functions.

Q. Why do I have to do an exam?

A. There is no requirement to complete a formal assessment such as an exam.

Q. Do I have to do this training even if I only perform one SMSF audit a year? (See above)

A. Even if you perform one audit of an SMSF per year, you are expected to display and maintain the appropriate knowledge and education for the work you undertake as required by the profession's standards.

Q. What is the cost to members?

A. Auditors who are currently ensuring they have the appropriate education and training to perform this work will not incur any additional cost. Those which have not been maintaining knowledge base will incur the costs of additional training.

Q. Do I have to do 30 hours of SMSF training?

A. No, you are required to do at least eight hours of SMSF training, the other training can be focused on accounting and auditing skills.

Q. Why do I have to do extra training?

A. This is not additional training — only clarification of the appropriate training required by those performing SMSF audits.

Q. Isn't 30 hours of CPD too onerous?

A. The requirement is for 30 hours a triennium across a number of disciplines which impact on superannuation funds as well as other accounting functions. It is anticipated that the training requirement would be partially met by the member existing training schedule.

Q. Why is the framework mandatory for members?

A. The reality is that some SMSF audits have not been up to standard and we must take action to address quality concerns, in the public interest.

Q. Why do I need to have a practicing certificate?

A. All members undertaking work as a member in practice including the audit of SMSFs are required to hold a practicing certificate. This provides the community with protection in the form of professional indemnityI cover and the supervision of the member via the QR program.

Q. What if I have done training with another body?

A. The bodies do not require training to be sourced from their own training offerings and encourage members to seek the training they feel offers the best information and outcomes for them.

Q. Do I have to do the audit of SMSF course again?

A. No, training undertaken in the current triennium will be considered as relevant. However, auditors should consider whether it is necessary to update skill and knowledge due to recent changes to SIS, accounting and auditing standards.

Q. Do I have to meet the minimum CPD requirements before 1 July 2008?
 
A. No. The minimum CPD requirements only apply for financial reporting periods from 1 July 2008. You do not have to complete the CPD requirements before 1 July 2008. However, if your current CPD triennium continues after 30 June 2008, any CPD completed before 1 July 2008 will be recognised under the new requirements.