The new initiative will look to offer SMSF audits ranging from full client list audits to one-off audits, SMSF administration and SMSF consulting.

The move comes after the release of the new Independence Guide by the Accounting Professional & Ethical Standards Board (APESB) in May this year, which stipulates that an SMSF auditor cannot audit an SMSF where the auditor, their staff or their firm has prepared the financial statements for the SMSF unless it is a routine or mechanical service.

The ATO has now confirmed that in-house audits, where the auditing is separated from the accounting or advice services — also referred to as Chinese Walls or ethical walls — will not make the cut.

The Tax Office has also revealed that its compliance approach for the 2020–21 income year will provide firms with time to consider if a restructure of their firm or audit engagements is necessary. Audits completed after 1 July 2021 will then be closely scrutinised, with potential referrals to ASIC on the cards.

Nexia Melbourne managing partner Paul Dal Bosco said the new division was strictly designed for accountants, ensuring that their clients remained as their clients.

“Changes in the laws of super means an accounting firm cannot audit a super fund that it administers, so we are happy to help other accounting firms,” Mr Dal Bosco said.

“Often, smaller accounting firms don’t have the specialist skills to assist their clients grow or even exist in this increasingly complex world — we can assist those accounting firms service their clients with management consulting, valuations, migration services, HR consulting services; services that may not be on tap within the smaller firm.”