SMSF Audit

As an SMSF auditor, it's your role to carry out the annual financial and compliance audit of an SMSF's operations. The trustees must appoint you as their SMSF auditor no later than 45 days before the annual return is due to be lodged and provide you with all relevant documentation to conduct and finalize the audit. If you request more information from the trustees, they must provide it to you within 14 days of your written request.

You're required to complete the audit and provide the Independent Auditor’s Report (IAR) to the trustees within 28 days of receiving all relevant documentation. A financial and compliance audit must be completed before a fund's SMSF annual return can be lodged.

Financial Audit:

You must conduct a financial audit in accordance with the Auditing and Assurance Standards Board (AUASB) . You must then express an opinion on the financial report, based on your audit findings. When undertaking the financial audit you should:
  • Prepare and document the audit plan, which details the audit approach to be undertaken
  • Identify the nature, timing, and extent of audit procedures necessary to gather sufficient evidence to support the statements
  • Gather evidence to support the financial statement assertions for material account balances and transactions
  • Conduct testing of the assertions made in the financial reports about the:
    1. Existence of assets, entitlements and liabilities
    2. Occurrence of transactions
    3. Completeness of transactions, events and assets being recorded
    4. Ownership, rights and obligations the SMSF has for assets, entitlements and liabilities
    5. Accuracy and valuation of data amounts recorded
    6. Classification of relevant events to correct accounts
  • Based on evidence gathered and checks performed, form an opinion about the fair presentation of the financial report for the reporting period and report your opinion in the approved form Self-managed superannuation fund independent auditor\'s report.
  • Document and retain audit working papers to enable another auditor who has had no previous involvement with the audit to gain an understanding of the work performed and the opinion reached.
  • Trustees must produce, as a minimum, a statement of financial position and an operating statement. Defined benefit funds require a statement of net assets and statement of changes in net assets. The audit report opinion should be based on financial statements signed.

Compliance Audit:

As an approved SMSF auditor, you must possess the required capabilities and competencies to conduct a compliance audit of an SMSF. This includes having full knowledge of the relevant legislation and its application to SMSFs.

You are required to notify the trustee in writing if you form an opinion that a contravention may be occurring, or may occur in the future. If the matter is a reportable contravention, you need to lodge an Auditor/actuary contravention report (ACR). Based on your audit, you must be satisfied that the trustees of the fund have met the requirements set out in the super laws. When doing the compliance audit, you should:
  • Consider materiality and risk
  • Obtain sufficient and appropriate evidence on which to base your conclusions
  • Test identified contraventions against the ACR reporting criteria
  • Prepare documentation that would provide another auditor who has had no previous involvement with the audit with an understanding of the work performed and the basis for the opinion reached

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