The Australian Securities and Investments Commission (ASIC) is proposing to revoke Class Order CO 12/1687 Competency Standards for Approved Self-Managed Superannuation Fund (SMSF) Auditors on the basis that it is no longer required because does not form a necessary and relevant part of the legislative framework.

Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia and the Institute of Public Accountants (IPA) (“the Joint Accounting Bodies”) believe the Class Order has effectively been superseded by: 

• Requirements in the:
  • Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Regulations 1994
  • Auditing and assurance standards issued by the Auditing and Assurance Standards Board (AUASB)
  • Professional, ethical and independence requirements in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board (APESB) 

• ASIC's registration process for becoming an Approved SMSF Auditor, including the SMSF auditor competency exam
• The ASIC and Australian Taxation Office (ATO) regulatory oversight functions.

We understand the sole use of the Class Order is to assist ASIC in setting questions for the SMSF auditor competency exam and as a reference point for candidates sitting the exam. On this basis, if the Class Order is revoked, there will be a need for an authoritative reference point that sets out the knowledge required to succeed in the SMSF auditor competency exam. If the Class Order is retained for this purpose, it will need updating accordingly.