We are well into the 2018 audit season and the majority of our 2017/2018 audits are being completed smoothly in a timely, effective and efficient manner. We are decreasing our completion times and can continue with your help.

Everyone involved in auditing SMSF’s wants the process to be as smooth and hassle free as possible. Most Trustees enjoy the freedom of being able to invest their super fund as they choose, however few enjoy the administrative side involved. Helping them to assemble the relevant audit evidence and including it as part of the initial submission to us will speed up the administrative process and make it as painless as possible.

When it comes to auditing SMSF’s and audit process we rely on the materials that are provided us. If there are gaps in the evidence and documentation or third party verification then precious time is spent chasing you and/or your clients for the relevant information.

Improve YOUR experience! Make sure your clients have ticked off the following top 10 essentials:

1.Set-Up Documentation

Trust Deed and Investment Strategy for every fund are required at the time of set up. If the Trust Deed is updated in any way, for example to reflect a change in Trustee, a copy of the update must also be provided to us to be held on file. Investment Strategies should be reviewed annually and updates (if any) provided to us. Ensure the strategy includes a consideration of insurance as required by the Act.  

2. Signed ATO Trustee Declarations

Any fund that was established after 1 July 2007 requires signed ATO Trustee Declarations or there is a reportable breach as per S.104A.

3. Engagement Documentation

Engagement Letter and Trustee Representation Letters need to be supplied and held on file by us.

4. Bank Statements / Term Deposits

These are required as third party verification to confirm all accounts (cash and term deposits) held by the fund and the transactions throughout the year. This is of high importance if there are pension payments.

Trustees should take care to ensure all accounts are held in the correct name of the fund, particularly if there have been any changes to the Trustee.

5. Share Details

A portfolio listing of listed and unlisted shares and unit trusts is required to confirm and support the values held in these securities.

Trustees should take care to ensure all shares / unit trusts are held in the correct name of the fund, particularly if there have been any changes to the Trustee.

6. Proof of Precious Metals

Proof of purchase is no longer sufficient to confirm fund holding of precious metals. If not held at a mint or other depository that can provide a 30 June holding confirmation then a declaration stating the holdings is required.

7. Collectibles

All collectibles require statutory declarations. Declaration must confirm:

a) Collectables are held in the correct fund name.

b) Are not in private use.

c) Are insured (within 7 days of purchase).

d) Held in secure storage OR

e) Are leased to non-related museum or business for display. A copy of the lease agreement and third party verification of income is required. 

8. Property

a) Third party appraisal of property valuation is required every three years to support market value. A contract of sale may be utilised.

b) A title search must be conducted each year. This can be provided to us or we may conduct the search on your behalf, invoicing accordingly.

c) Whereby a property is held by a Bare Trust, a copy of the Bare Trust Deed is required and details of the LRB – see below.

9. Loans

For each loan a copy of the loan agreement must be provided to us.A loan statement as at 30 June each F/Y is required to verify loan balances.

10. Related Unit Trusts

If there are any related unit trusts, both financials and supporting documentation is required.

Depending on fund activities, further documentation may be required to complete your audit.

The items listed above are frequently missing from auditing documentation supplied to us.  

SMSF Audits is about more than just cost effective audits. We provide complying, timely audits and offer support to solve potential problems. Let us be your competitive advantage.