Thankyou all for your comments however you all seem to miss the point that accountants can still perform an audit of an SMSF and do the tax return ( like in the old days) if they in fact only act as a compiler of the financial statement from a T/B supplied by the trustees. So in my case the accountant is engaged to do the audit. In their engagement letter they have a clause which permits them to sub contract out the provision of audit services, The Trustees agree to this process. The accountant then engages my firm (and many others) to perform these services. I do not see any mischief in this process. Independence is a state of mind not just a form. My independence is not compromised in any way as my audit review points would indicate. I do not see any mischief in this arrangement.