The SMSF auditor compliance 2025 landscape is shifting, and it’s more important than ever that we stay on top of ATO expectations. With over 625,000 self-managed super funds (SMSFs) now managing more than $1 trillion in assets, independent auditors play a vital role in maintaining the sector’s integrity.
As part of the ATO’s SMSF audit focus for 2025, several key compliance areas have been highlighted. Here’s a summary of what auditors need to know and do to remain compliant and confident this year.
Why SMSF Auditor Compliance in 2025 matters
The ATO is sharpening its focus on SMSF audit quality, and the expectations for SMSF auditors have never been higher. Non-compliance can lead to Auditor Contravention Reports (ACRs), referral to ASIC, or potential removal from the approved auditor list.
Auditors must now take extra care in areas like asset valuations, independence, and audit volumes. Here’s how to prepare.
1. ATO Compliance Focus: Market Valuations
One of the ATO’s key compliance areas is ensuring market valuations of SMSF assets are substantiated with sufficient, appropriate audit evidence.
If adequate evidence is not provided, we are required to:
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Modify the Independent Auditor’s Report (IAR)
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Lodge an Auditor Contravention Report (ACR) if necessary
🔍 Tip: Avoid issues by requesting up-to-date market valuations and ensuring all supporting documentation is reliable and complete.
The ATO will be actively reviewing funds where asset values have remained unchanged for multiple years without corresponding ACRs. Staying vigilant helps preserve your firm’s reputation and supports SMSF audit compliance.
2. Handling High SMSF Audit Volumes Responsibly
The ATO is paying close attention to auditors completing over 1,000 SMSF audits annually. Site visits may be scheduled to assess whether your processes support quality audits at scale.
At National Audits Group, we maintain standards through:
Peer reviews
Internal quality checks
Balanced workload distribution
Documentation and evidence controls
⚠️ Remember: Volume must never override audit quality.
3. Trustee Verification: Avoiding ACR Breaches
SMSFs must not be operated by disqualified trustees or directors. Auditors are responsible for checking trustee status via ASIC Connect.
If you discover a disqualified individual still acting in a trustee role:
Take corrective action
Lodge an ACR
✅ Compliance check: Make trustee verification part of your standard audit workflow.
4. Watchlist: Fixed-Fee and High-Risk Audit Models
The ATO is using data analytics to identify high-risk SMSF audits, especially those completed under low-cost, fixed-fee models. These audits often risk cutting corners and missing material issues.
To meet SMSF audit requirements, ensure:
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Your pricing reflects the time needed for a quality audit
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Complex audits receive the attention they deserve
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Documentation and workpapers clearly support your opinion
5. Staying Independent: Meeting APES 110 Standards
Maintaining SMSF auditor independence is a critical expectation under the APES 110 Code of Ethics. The ATO will continue to focus on auditors who:
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Conduct in-house audits
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Use reciprocal audit arrangements
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Have long-standing client relationships
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Rely heavily on a single referral source
🔒 Best practice: Perform an annual independence review and avoid any arrangements that may compromise objectivity.
Action Checklist for SMSF Auditors in 2025
Here’s what you can do now to stay compliant:
✅ Ensure all market valuations are supported with reliable, auditable documentation
✅ Lodge ACRs where necessary and modify IARs if evidence is lacking
✅ Verify trustee/director status via ASIC Connect
✅ Reassess your audit volume and pricing models to ensure quality isn’t compromised
✅ Review your firm’s compliance with APES 110 and independence requirements
✅ Stay informed of ongoing ATO SMSF audit focus areas
Final Thoughts
Compliance isn’t just about ticking boxes—it’s about protecting the future of the SMSF sector and maintaining trust in the audit process. With proactive measures, ongoing education, and quality control systems in place, SMSF auditors can confidently navigate 2025’s regulatory environment.
How National Audits Group Can Help
At National Audits Group, we specialise in independent SMSF audits and are fully aligned with the latest ATO compliance expectations. Our experienced team uses robust audit software, rigorous review processes, and a structured independence framework to ensure every engagement meets the highest professional standards. Whether you’re an accounting firm looking for a reliable audit partner or an SMSF administrator seeking support, we offer practical, efficient, and fully compliant audit solutions. We don’t just audit—we work alongside you to safeguard fund integrity and deliver peace of mind.
