The Administrative Appeals Tribunal (AAT) has upheld ASIC’s decision to disqualify Ms Janette Townshend from being an approved self-managed superannuation fund (SMSF) auditor for breaching independence requirements.
“Suspending or disqualifying Ms Townshend would send a clear message to the rest of the audit profession that independence is crucially important. The need for general deterrence makes that essential’, Deputy President McCabe said.
Read the AAT’s decision and reasons for the decision.
Ms Townshend, of Templestowe, Victoria, was originally disqualified from being an approved SMSF auditor in August 2022 for breaching auditor independence requirements (refer 22-328MR). Ms Townshend appealed the decision to the AAT on 15 November 2022.
On 23 November 2023, the AAT delivered its decision to affirm the disqualification, finding there is no doubt that Ms Townshend was in breach of auditor independence requirements when she audited her spouse’s SMSF for six income years.
The AAT’s reasons include that, “The integrity of the taxation system and the protection of consumers will be compromised if auditors of SMSFs cannot be trusted to perform their role with skill, independence, and integrity.”