The role of an SMSF audit firm is to carry out annual financial and compliance audits of your SMSF’s operations. Before the annual return of an SMSF is due, trustees appoint auditors after providing all necessary documents to conduct the audit. After the audit is conducted, the auditor provides the trustees with a report within 28 days of receiving all relevant documentation.
The validity and accuracy of your SMSF’s financial records is checked at an audit, making sure that your fund is compliant with the superannuation rules. In other words, audits and reviews indicate the health of your SMSF, pointingout any areas of concern. Here is what you can expect from a typical SMSF audit:
- The processes and performance of your SMSF is reviewed to identify issues, if any
- The auditor tests whether you are applying the super lawscorrectly
- Areas are identified where the SMSF account holdermight need support or education
Once your audit is complete, the auditor will report the findings to you and your trustees. The trustee is not required to submit the audit report to the ATO right away, but since findings from the audit need to be included in the annual return, it is always a good practice to submit the report.
An audit helps you and your trustees assess the health of the SMSF fund, hence it is not just important to the law but you. An audit gives you a better understanding of whether or not you are in a position to profit from your SMSF. It also gives you a fair idea of the changes you may need to make in your strategies.
It is important to choose your auditor wisely as it determines the position of your SMSF on an annual time-line. Have our experts guide you on anything you need to know with regards to an SMSF audit, write to us at [email protected] or call us on 1300 707 325