One SMSF auditor disqualified and another suspended

ASIC disqualified Philip Shugg of Victoria from being an SMSF auditor for not being a fit and proper person as he was bankrupt.

The corporate regulator also suspended for one year and imposed conditions on Greg Marlow of the Northern Territory.

ASIC noted Mr Marlow had significant deficiencies in auditing the ownership and valuation of fund assets, lease agreements, whether transactions were on an arm’s-length basis, and compliance with personal use and collectable asset rules.

Further, Mr Marlow issued an audit report in an incorrect form and did not obtain signed financial statements.

SMSF auditors with conditions imposed on them

ASIC noted that it imposed conditions on the following SMSF auditors:

• John Redenbach of New South Wales – for deficiencies in maintaining auditor independence, and deficiencies in audit work on the ownership and valuation of fund assets and whether a transaction was on an arm’s-length basis.
• Lenneke Serjeant of New South Wales – for deficiencies in maintaining auditor independence, and deficiencies in audit work on the valuation of fund assets, lease and loan agreements, execution of trust deeds and reviewing the investment strategy by trustees.
• Angelo Covelli of Victoria – for deficiencies in audit work on the valuation of fund assets, limited recourse borrowing arrangements, lease agreements and rental statements.
• Darren Tappouras of New South Wales – for deficiencies in audit work on the ownership and valuation of fund assets, in-house asset requirements and limited recourse borrowing arrangements. He also did not obtain signed financial statements and did not comply with CPD requirements.

Source: ASIC

ASIC said the various conditions imposed across the auditors were: