SMSF Audits:

There are a number of SMSF planning and report requirements that need to be addressed. One requirement is for the SMSF to appoint an approved auditor and to have the financial accounts and statements of the fund audited each year by the auditor.  Professional legal advice from a skilled Superannuation and Taxation Solicitor on the drafting, origination and execution of a SMSF will of course need to address this obligation under superannuation law as well.

The first issue is choosing an auditor for the SMSF. An approved auditor of a SMSF is usually a person who is an Auditor-General of the Commonwealth or a state or territory, a registered company auditor or a member or fellow of a Professional Accounting Body, such as the Institute of Public Accountants. Our team of financial advisers, accountants and lawyers may be able to assist you in the selection process and all auxiliary needs such as correspondence, other reporting obligations to the ATO, or addressing any issues that may arise.

Another issue is that superannuation law imposes stringent record-keeping obligations on the trustees of regulated superannuation funds (including SMSFs). These obligations involve keeping accurate and accessible accounting records that explain the transactions and financial position of the fund for a minimum of five years, preparing an annual operating statement and an annual statement of the financial position of the fund (for at least 5 years), keeping minutes of trustee meetings and decisions, recording of changes of trustees, and a trustee declaration of understanding of duties for a minimum of 10 years. Copies of all annual returns lodged for a minimum of ten (10) years and copies of all reports given to members for a minimum of ten (10) years need to be kept. This record keeping and disclosure requirements are very thorough and strict, and receiving sound legal advice from a Superannuation and Taxation Lawyer in this regard may be immensely valuable, time and cost effective for any trustee or individual that is involved in the management or administration of superannuation funds.

Furthermore, it is important to have an understanding of the standards against which SMSF audits are conducted. The Auditing and Assurance Standards Board (AUASB) is the Commonwealth body charged with the responsibility of issuing statutory auditing standards. The AUASB’s functions and powers are set out in the Australian Securities and Investments Commission Act 2001. The AUASB has issued standards applicable for financial reporting periods commencing to ensure that they conform to the International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). In addition, changes were also made to ensure that the auditing standards are enforceable in the Australian legal and regulatory environment.  Accurate legal advice from a Superannuation and Taxation Lawyer in this regard may be immeasurable if you are unsure if your reporting or disclosure activities have been sufficient or compliant with superannuation law.

If you would like further information or wish to discuss your SMSF matter with an experienced Superannuation and Taxation Lawyer, please do not hesitate to contact us by telephone on (02) 9233 4048 or by email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.