In mid-March we announced the publication on our website of our detailed
guidance on the independence standards for approved self-managed super
fund (SMSF) auditors.
Providing guidance in this format is enabling us to respond to changes,
emerging issues and future guidance needs to assist approved self-
managed super fund (SMSF) auditors to meet their obligations.
Today we announce that an update has been applied to the following
section of the guidance, Auditor Independence – Issues for firms when re-
structuring in the Reciprocal auditing arrangements and referral source
information area.
The update makes it clear that where a well-established firm mainly derives
its income from providing auditing services, as a guide, if the fees
generated from one referral source are less than 20% of the firm’s total
fees, we would not consider this in itself to create an independence threat.
Other factors may still be relevant in evaluating the level of any threats to
independence.
Since the guidance is intended to be an ongoing document to which further
updates on independence issues may need to be added, we will provide
notification to industry of when any significant updates are made.