As SMSF is not an ‘invest & forget’ game, staying enlightened about SMSF audits & auditors is a winning bet.
It’s peremptory to have your SMSF audited annually by an approved SMSF auditor. Failing to do so can risk your fund to be adjudged and losing its tax concessions.
“How propitious is it to have an auditor?”, if it’s disquieting you also, then here is the rejoinder:
- You cannot lodge your SMSF annual return until you have had your SMSF audited by an auditor.
- The auditor cannot be a member of the fund, or the same person who prepared its accounts. So, undoubtedly you need to charter one.
- The auditor scrutinise if your accounting policies, financial statements and the presentation of the fund’s accounts, are germane for your super fund.
- Identifying your fund, breaching the super laws, auditor will shelter you from heavy penalties by giving time & advise to fix it before reporting it to ATO.
- The auditor provides you with their SAN which is required to be disclosed on the annual return.
- The auditor is obliged to report to the ATO if the financial position of the SMSF is unsatisfactory or if a contravention of the SISA and SISR has occurred or may be about to occur.
- Finally auditor only will abet you for attaining all these vital documents:
1. A letter of audit engagement
2. Audit working paper
3. Audit finalisation letter
4. A copy of final, signed financial report of the fund and relevant accounting records
5. An approved form enclosing the auditor’s opinion and qualifying remarks
Sigh of relief! That these ‘eyes & ears’ of compliance regime of SMSF, can set you hassle free from almost everything related to exigent SMSF auditing. Ostensibly, the SMSF auditor is not an option, it’s a wise desideratum.
Want to know more about SMSF audits? Contact our experts on 1300 707 325 or [email protected] today.