Company Auditor
All public companies whether listed or unlisted along with numerous private companies required annual financial audits. For private companies this is either due to their size or alternatively because it is demanded via a government agency in order to secure or maintain a license. All company audits must be signed off by RCA’s who have deep expertise in completing corporate audits under the Corporations Act 2001 (Cth). These corporate audits involve a detailed review of the financial records, source documents, procedures, corporate governance documentation and other internal records with a sceptical eye to obtain a reasonable level of assurance that any reports are free from material misstatement.
AFSL Auditor – Financial Licensee Audits
Financial services licensees are required by the regulator to provide audited financials under the Corporations Act 2001 (Cth). The actual documents lodged to ASIC include from FS70 & FS71 which include a copy of the audited financial statements which are generally due to be lodged within four months of the end of the financial year (although for some holders this may be reduce to three months depending on the license being held). In recent times ASIC has been very lenient in extending this deadline due to the increased reporting requirements which have been placed on AFSL holders.
To complete the annual audit our AFSL auditor will first review the financials prepared by your accountant to confirm if the figures presented meet the reporting requirements required by ASIC and then work to confirm that the figures are materially correct. This is completed via a review of the source documents held in your Xero, MYOB, QuickBooks Online or other cloud software platform. Our team will also test the carrying values of your assets and liabilities on the balance sheet and require supporting documentation to justify the balances and account for any impairment. The cash flow statements for the firm will need to be audited for a 15 month period being the financial year itself along with the three months directly after the end of the audit period allowing us to confirm whether any solvency issues have been detected.
Separate to the financial portion of the audit we will also need to review your internal control systems, your compliance paperwork, financial services guide, compliance manuals and risk management procedures. To learn more about how your AFSL auditor needs to operate checkout out AFSL Audits page.
Not for Profit Auditor
The regulator for Not for Profits and registered charities in Australia is the ACNC (Australian Charities and Not-for-profits Commission) which requires organisations to produce financial records which may require either a formal review or a full audit depending on turnover. Small charities under $250,000 turnover per annum are not required to have their books reviewed or audited but rather just need to lodge an Annual Information Statement to the regulator. These statements are generally prepared with the support of the organisations accountant or bookkeeping although these smaller organisations may still need support depending on whether they receive any grants or other funding which has an audit obligation built into the funding agreements. For these clients we can generally assist with limited scope audit of the acquittal figures alone as opposed to a complete organisational audit.
Organisations whose turnover sits between $250,000 and the million dollar mark have the option ny the regulator of either completing a full financial audit or a more limited review of the financial statements prior to submission. As a general rule clients tend to pick the full audit if it is required for another purposes such as funding or where required by the constitution of the organisation. The limited review tends to be more popular as it is cheaper and quicker for an auditor to complete. The purpose of a review is to give a negative assurance only where the auditor states that they have found no evidence to suggest that the organisation is non compliant. This contrasts to your general audit standard of having gained sufficient evidence to confirm the organisation has met its requirements under the accounting standards and the relevant acts such as the Australian Charities and Not-for-profits Commission Act 2012 (Cth).
For organisations over one million in turned there is no choice but to complete a full financial audit which is then submitted to the ACNC along with the reports themselves. This audit involves an analysis of the books and records, processes and procedures as well as the governance framework and associated documents. This audit confirms with a positive level of assurance that the reports are free of material misstatement.
SMSF Auditor
Separate from Registered Company Auditors ASIC also licenses SMSF Auditors which are then able to complete Self Managed Super Fund audits. These audits are generally organised by the accounting firm completing the audit and your assigned SMSF Auditor will liaise directly with your accountant who completed the SMSF works. The process for an SMSF Auditor involves gaining access to your accounting software such as Class, BGL360 or Super Mate which then allows us to review the source documents, compliance and governance documents along with the financials and tax returns in the same location.
As our firm has a focus on modern technology, please note we are unable to complete ‘shoebox’ audits or SMSF returns which have not been prepared on a cloud based software system with the support of an SMSF Accountant. As well as being for quality control reasons it is also that the cost of manual auditing is just non-viable for auditors, accountants and trustees and is antiquated in the modern world.
All SMSF audits are quoted in advance, and we are happy to handle technically difficult audits and contraventions as opposed to just the easy ones. Our staff are very well versed in the Superannuation Industry Supervision Act 1993 and are pleased to provide ongoing support to accounting firms we partner with.
Incorporated Association Audits
Incorporated associations registered with Consumer Affairs Victoria (CAV) have very similar audit and review requirements as discussed in the Not-for-Profit auditor section which are governed by the Associations Incorporation Reform Act 2012 (VIC). These reports must be lodged within one month of the annual general meeting along with the relevant fee. There are similar independence requirements on auditors for CAV registered organisations although the license required by the auditors may be reduced from a Registered Company Auditor to merely members of professional accounting bodies.
For organisations registered both with the ACNC and CAV they may be eligible for the exemption which allows you to lodge the reports solely with the ACNC and not have to dual lodge with CAV and pay the annual statement lodgement fee. For more information on this exemption see here.
Need some help? Our Auditors are here to help!
Would you like to learn more about how our Melbourne Auditors can help? Give us a call on (03) 9020 2202 or get in touch online and our friendly team will be happy to assist.
Our team of Melbourne auditors are passionate about providing high level assurance and audit services throughout the wider Victorian market. These services are focussed on creating and maintaining investor and member confidence in our clients financial reporting frameworks. As the trusted intermediary between your accountant and your stakeholders our team of independent Melbourne auditors appreciate the critical nature of our work in providing confidence to a variety of internal and external stakeholders including investors, members, banks and government agencies.