I'd actually completely support the ATO in this. There are some absolute scams being run between accountants and auditors. Some years ago with my SMSF I experienced it myself. I'm not going to go into the details here but effectively my accountant had a stitched up arrangement with an auditor (a firm she used to work for) where they just signed off on the audit without ever having seen it. They divided the fee between them.
I discovered it and reported her to her professional body. She was penalised and is no longer in business.
