Any person who manages a self-managed superannuation fund (SMSF) must employ a registered SMSF auditor for annual audit of the firm. It is important that you seek out and appoint an approved auditor 30 days prior to your audit. A registered SMSF auditor will examine the fund’s financial records, validate their accuracy and ensure their compliance with the super rules.
One should not always look for cost-cutting while choosing the right SMSF auditor and must ensure that the auditor is approved. An approved auditor will seek a letter of representation from trustees of the fund, stating that the funds have been managed within the law requirements.
Late submission of audit report draws hefty penalties. You must ensure that your auditor can be trusted with reliable turnaround time. A registered auditor will furnish the audit report duly before submission of the return and will also provide you with the audit checklist to ensure that all requisite documents are furnished.
An approved auditor must be registered with one of the following bodies:
- The Institute of Chartered Accountants in Australia
- CPA Australia Limited
- National Institute of Accountants
- SMSF Professionals’ Association of Australia Limited
- Association of Taxation and Management Accountants
- National Tax and Accountants Association LTD
You must check at ASIC to see if your auditor is registered, and is not barred or disqualified by ASIC.
Confidentiality is another significant factor. Your auditor is under a legal binding to disclose and seek your permission if the audits are being outsourced oversees. A registered auditor will act in accordance with APES 11, APES 320 and APES 325 while auditing your funds statements.Also, you must pre confirm that in case of the breach, who will be taking the hit?
Your professional relationship with your SMSF auditor should be the one based on trust, respect and complete confidence.
Want to know more about SMSF? Contact our experts on 1300 707 326 or [email protected] today.