The ATO has told SMSF auditors that its 2026–27 program focuses on evidence, market valuations, audit quality and auditor obligations.
The regulator said SMSF auditors play an important role in maintaining confidence in a sector of more than 670,000 SMSFs holding over $1 trillion in assets, and that quality audits protect members’ retirement savings and support the integrity of the SMSF system.
It said its 2026–27 compliance program will focus on areas where it sees the highest risk to audit quality and SMSF regulatory outcomes.
2025–26 By the Numbers
During 2025–26, the tax office completed close to 200 reviews and audits of SMSF auditors and referred 39 auditors to the Australian Securities and Investments Commission (ASIC).
These referrals included auditors who lacked the practical experience to conduct audits, and auditors who did not conduct independent or adequate audits. The reviews also identified recurring issues with audit evidence, auditor reporting and file documentation. In many files, auditors had not obtained sufficient appropriate evidence to support the ownership, existence or market value of fund assets.
These findings have shaped the ATO’s 2026–27 compliance focus areas:
2026–27 Compliance Focus Areas
- Market valuation reviews: checking whether auditors obtained sufficient appropriate objective evidence to verify compliance with regulation 8.02B, which becomes especially important where valuations may trigger a Division 296 liability for a fund member.
- High-risk auditor reviews: targeting auditors flagged by the ATO’s own intelligence and data as potentially not conducting independent and adequate audits.
- High-volume auditor reviews: checking that auditors managing a large number of audits have adequate processes and procedures in place.
- Auditor independence reviews: including cases where an auditor or their firm provides both assurance and non-assurance services to the same fund.
- Newly registered auditor reviews: checking new auditors understand their obligations and helping them address deficiencies early.
The ATO reminded SMSF auditors that quality audit files clearly document professional judgements and contain sufficient appropriate audit evidence to support audit conclusions.
For more information, review the ATO guidance on conducting a compliance audit of an SMSF.
