More stringent auditing requirements for self-managed super funds (SMSFs) foreshadowed in the Cooper Review will needlessly increase costs, the national accounting firm Chan & Naylor argued on Friday.

The Cooper Review suggested that SMSFs should have greater independence between the auditor and its financial management.

"This proposal could significantly add to compliance costs, not to mention create greater administrative complexity for retirement savers," said Chan & Naylor managing director Ken Raiss.

Chan & Naylor said it wants to ensure full compliance, but this measure may compromise the existing system which is working well, and will unnecessarily increase costs by as much as $2,000 on an average $456,000 fund.

"The Cooper Review found that the SMSF sector is well-functioning and successful, which we would argue is a product of current auditing requirements."

Mr Raiss said that when auditors and accountants are entirely independent there is a risk that the auditor may not be given all the data required for thorough auditing.

"The current arrangements allow for the auditor and accountant to view the fund's arrangements holistically and therefore objectively.

"There is a fine line between independence and good financial management, which we believe would be compromised under this proposal," he said.