Why Do Self-Managed Super Funds (SMSFs) Require Auditing?
If you have a self-managed super fund, you must ensure your SMSF is audited by an approved auditor on a yearly basis. This is usually done with the help of your accountant and is required by law under section 35C of the Superannuation Industry Supervisory Act 1993.
The audit has two components; the audit of the financial report and the compliance audit. The audit of the financial report is to enable the auditor to form an opinion as to the fair presentation of the financial report in accordance with stated accounting policies.
The compliance audit helps enable the auditor to form an opinion as to the trustees’ compliance with specified requirements of the SISA and the SISR and is conducted in accordance with the Australian Standards on Assurance Engagements.
The auditor needs to obtain a preliminary understanding of the SMSF, including the trust structure, nature of its investments and administration, parties involved in the management and trusteeship of the SMSF and related parties of the trustees and members. The auditor reviews the current trust deed to verify whether the trust deed was properly executed, the SMSF has current and appropriately empowered trustees, was established with either a corporate trustee, individual trustees together with numerous other compliance requirements specified in the audit report.
In most cases the accountant of the Fund will liaise with the approved auditor to ensure that the necessary supporting documentation as well as administrative documents are sufficient and appropriate to satisfy the auditing standards. Your accountant will be aware of the requirements and any or all documentation required to complete the audit which helps the audit process run more smoothly without compromising the independence of the auditor.
The auditor will then provide an audit report using the ATO approved form which covers both the financial statement and compliance components of the audit.
Super Audits specialises in all your SMSF auditing needs. For more information about our services, contact our team of experts today.