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All SMSF trustees or directors must appoint an approved SMSF auditor to audit their fund every year. Not only is an annual audit mandatory but it must be conducted by an approved SMSF auditor who is registered with the Australian Securities and Investments Commission (ASIC). But who is an approved SMSF auditor and what do you need to consider when appointing one for your SMSF? Who is an approved SMSF auditor? An SMSF auditor is responsible for analysing your fund’s financial statements and makes sure that your fund is compliant with superannuation law. They must report any non-compliance issues to all fund trustees and the ATO. To qualify as an approved SMSF auditor, a person must demonstrate: • they hold the necessary academic qualifications, such as a degree (minimum three years) in accounting which included a course in auditing • they have at least 300 hours experience auditing SMSFs in the previous three years under the direction of an approved SMSF auditor • they have passed a competency exam, and • ASIC is satisfied that they: ‒ are unlikely to contravene the ongoing obligations of an approved SMSF auditor ‒ are capable of performing the duties of an approved SMSF auditor ‒ are a fit and proper person to be an approved SMSF auditor ‒ hold adequate and appropriate professional indemnity insurance ‒ are an Australian resident ‒ are not subject to an enforceable disqualification or suspension order.  To maintain their approved SMSF auditor status, auditors must satisfy continuing professional development requirements, maintain adequate and appropriate levels of professional indemnity insurance and report to ASIC annually.