SMSF Audit
When a self-managed super fund is established, one must ensure that the SMSF is audited annually by an approved auditor. The audit would include conducting two types of audit: a financial audit and a compliance audit.
A financial audit enables your auditor to audit and examine your financial statements while a compliance audit involves assessing your SMSF’s compliance with superannuation rules.
Who can conduct an SMSF audit?
Auditors who are approved SMSF auditors under the registration and management of Australian Securities and Investment Commission (ASIC) are able to conduct an SMSF audit.
An SMSF auditor must meet minimum experience, education and competency requirements in order to get registered with ASIC.
Auditing Process
The trustee of an SMSF needs to provide the auditor with an engagement letter that outlines auditor’s responsibility for the audit and this auditor should be appointed at least 30 days before the audit report is due.
Along with the engagement letter, the auditor should also be supplied with a letter of representation, which states that the trustee believes that the financial statement is fairly represented and that the SMSF complies with superannuation laws.
The information which the auditor should verify includes:
- Details of trustees of the fund and a list of directors of the company.
- Financial statement for the year end.
- Bank statements.
- Minutes of the meeting for the year.
- Annual income tax return.
- Contribution documents.
- All accounting work papers.
- Details of all deposits and fixed interest securities.
- All share certificates, etc.
- Details of property held.
Outcome of Audit
At the completion of the audit, trustee(s) will be provided details of any contraventions of SISA and SISR, along with recommendations for courses of actions and any weaknesses in internal controls that can be improved, if any. Also, the auditor is responsible for writing to the ATO if the financial position of the SMSF is unsatisfactory or if it is in contravention of SISA and SISR.
We conduct fixed fee audits. Our fee for a standard audit is $440 (excluding pensions). Contact us today on (03) 86091889 to find out more.