Audit Evidence: Definition & Types  

After the audit is done, auditors are required to produce an audit report based on the audit evidence stating the financial standing of a client or an organisation. 

Auditing and the processes involved with it sound really intimidating for most people and businesses. Many think that getting audits done doesn’t predetermine the future of a business. Auditing, though regarded as a taxing duty, is helpful in discovering potential measures you can do to grow your business or perhaps your SMSF.

An audit is a methodical and independent inspection of financial statements, asset records, and documents of an organisation as presented in the annual report. The audit’s purpose is to establish whether the information presented is fair and that it reflects the financial position of an organisation.

SMSF audits are done to ensure that these funds are in compliance with the Australian Tax Office (ATO)  regulations and ASIC  guidelines. 

What Is Audit Evidence?

Audit evidence refers to facts or data used by auditors as part of their audit process to draw their judgment on whether or not financial statements are compiled in all substantive terms and in compliance with the financial mechanisms applicable.

Why the 3-Year SMSF Audit? 

How often should your self-managed super fund (SMSF) be audited? Currently,  the ATO requires an annual audit for your SMSF, but that might change soon due to a proposal to extend this to a 3-year cycle. 

This measure is done to lessen red tape and lower costs, but there are concerns that this may not be the outcome. 

Are the advantages worth the hassle?

Do you have your own super fund? If none, you most certainly know someone who does. With over half a million SMSFs in Australia as of June 2018, it is undeniable that the trend has caught the mass’ attention. Majority of SMSFs are owned by families or spouses with only 2 members. The total numbers for SMSF assets registered is about a quarter of all superannuation funds with an estimate of $750 billion, this number alone is stellar. 

Many cases have surfaced that SMSF funds provide direct cash to their super’s investment manager, without a bank account, mostly to incur higher interest rates. This system can contribute to inconsistency and unlisted assets. Once these funds are audited by registered auditors, it became evident that trouble is brewing for these funds, some even lost assets amounting to nearly a million dollars due to non-compliance.

For these cases, a timely and accurate audit report would have helped the trustees understand their true position.

Our Location

Super Audits has an extensive client base with clients in every state and territory. We perform several hundred super funds annually.

Where Can You Find Us? 

The great thing about Super Audits is we can do your audit requirements for you wherever you are in Australia. We are currently based in South Australia, but we can do your audits for you even if you’re in Western Australia, Queensland, or Sydney. With Super Audits, you are certain that distance can never be a hindrance to us as a good auditing firms in Australia. Send in your audit requirements and will get back to you in no time. 

Why Choose Us? 

Our expert team of auditors at Super Audits are qualified as approved SMSF auditors pursuant to the Section 35C of the Superannuation Industry Supervisory Act 1993. We have a team of auditors who hold tertiary qualifications from leading Australian universities and are even members of different accounting professional bodies with broad experience in auditing large entities.

What Are Self-Managed Super Funds?

It carries a lot of responsibility to monitor your own super funds. In fact, it requires considerable time and effort.

If you have a lot of excellent and comprehensive knowledge of tax and legal matters, a self-managed super fund (SMSF) may be fit for you. 

You need to recognize your legal responsibilities and the investments that you make because even though you employ experts to help you, you're still the one that ultimately controls your own SMSF.

Do-it-yourself Super Fund

The word “Self-Managed Super Funds” basically means to create your own superannuation fund. Having an SMSF is gaining full control of your super - how it is invested and utilised. This has become a popular way of saving for retirement.

While SMSF merits a do-it-yourself procedure, it is absolutely incorrect to assume that managing a super would be as easy as 1, 2, 3. It is essential to note that you must be aware of the compliance requirements and regulations set by the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC).