Two recent cases involving SMSF auditors highlight the potential
liability of auditors in undertaking audits of SMSFs and the need
for auditors to obtain evidence to support the opinions
expressed.
In Cam & Bear Pty Ltd v McGoldrick [2018] NSWCA
110, the NSW Court of Appeal found the SMSF Auditor negligent for
failing to provide adequate warnings to the SMSF Trustee as to the
recoverability of assets which were described as "cash".
The Court considered that these assets were actually unsecured
loans to a company related to the SMSF's investment advisor and
that the auditor had an obligation to investigate the
recoverability of the "cash". The auditor was also
required to provide a qualified opinion given that he was a
"very experienced accountant and auditor who was engaged for
the purpose of protecting the Fund and its trustee against
financial risks".
