If you are running a self-managed super fund, it is compulsory that you have your fund undergo an SMSF Audit each year before lodging an annual tax return.
The team at Auditors Australia have decades of experience providing quality audit solutions to self-managed superannuation funds. Our auditors have an extensive understanding of the reporting requirements applicable under the Superannuation Industry (Supervision) Act 1993.
We work mostly with accounting firms, guiding them though the SMSF audit process while also ensuring the strict independence requirements by the Australian Taxation Office are met.
For fast and reliable SMSF Audit services, reach out to us at Auditors Australia.
how we help
SMSF Audits Process
We are all about efficiency at SMSF Australia. Our SMSF Audit is designed to be a simple and easy process. Below is a quick overview of how the audit is completed for self-managed super funds.
1 – Provide audit documents
The first step to an SMSF audit is to provide all the necessary documents to your appointed auditor. For a quality, complete audit, auditors will ask extensive information based on the types of investments held in the SMSF.
Some of the files that may be required by our SMSF auditors include:
- Legal and Compliance Documents – the super fund deed; signed copies of member applications, trustee consents, and ATO trustee declarations; copies of the fund’s corporate extract; representation letter, trustee minutes, along with signed declarations; the investment strategy in the relevant fiscal year; financial reports, tax return and auditor’s report from the previous financial year. You will also be asked to provide engagement letters for your SMSF accountant and us as the auditor that are signed by the trustee.
- Financial and Tax Documents – financial reports for the current financial year, including the tax return, tax reconciliation and ATO portal reports up to the date of the SMSF audit, bank statement copies that indicate the super fund’s name and relevant transactions. The Actuarial Certificate, pension documents, rollover statements, confirmation contributions, and any effects from the application of Division 293, will also be required by our auditors when applicable.
- Investment Substantiation – The documents that you need to provide our auditor will depend on the assets that are held by the super fund; dividend and transaction statements for listed securities; share certificates; and tax return documents will be asked for unlisted securities. For funds holding properties, copies of the purchase contract, settlement statement, certificate of title, and other documents must be provided to our auditors.
For funds lending money, you need to provide us with a duplicate of the signed loan agreement, loan schedule, proof of repayments during the current year, and a statutory declaration that confirms there are no transactions in breach of related party rules.
For SMSFs that hold collectables or precious metals, some documents that our auditors may require are proof of purchase, valuations indicating the value of the assets at the end of the financial year, and insurance policy for the investments that confirms that the SMSF owns the assets and their insured value. Other evidence that the assets held exist will also be required. For example, a photo of gold or silver together next to a current issue of a newspaper.
While Auditors Australia will guide you throughout the process, for a smoother and faster audit experience, be sure to have relevant files ready. The general rule of thumb to remember is to ensure that there is a supporting document available for each transaction and holding value within the SMSF.
* Please read below for more information about SMSF Audits using Class and BGL360.
2 – Sign the Engagement Letter
Before proceeding to the actual SMSF Audit process, the Auditors Australia staff will generate an Engagement Letter, Trustee Representation Letter and other audit letters that should be signed by the Trustee.
3 – Initial Audit and Queries
Upon receiving all the necessary documents, our team will begin the process of auditing the SMSF. The auditors will examine the SMSF’s financial reports including the income statement, balance sheet, and member statements. They will also check whether the fund is compliant with the Superannuation Industry (Supervision) Act 1993.
When the abovementioned initial checks are completed, our team will prepare the auditor’s report. We will directly communicate with you for any queries or discrepancies with the super fund.
Auditors are required to report certain contraventions or qualifications to the Australian Taxation Office within 28 days of discovery during the compliance audit. Trustees should work together with their appointed SMSF professionals, including their auditor to rectify these violations as soon as possible.
The fund’s trustees are also encouraged to take advantage of the ATO’s SMSF early engagement and voluntary disclosure service for contraventions that remain unresolved before the auditor reports it to the ATO.
The ATO will take into account that the trustees voluntarily reported any of the super fund’s contraventions when it evaluates the potential penalties that will be imposed on the fund later on.
4 – Supply Further Documents
To complete the auditing process, our auditors may ask you to provide further information and files. This is also to provide documentary answers to queries and address any compliance matters.
5 – Audit Completion
For the last step, you will be provided with the invoice, independent auditor’s report, and management letter.
It is the responsibility of the fund’s trustees to complete and submit their fund’s audited yearly return to the ATO with the details from the auditor’s report. This ensures that the SMSF fully satisfies its tax obligations to the ATO.
SMSF Audits via Class or BGL360
For a streamlined preparation of files for an SMSF Audit, our auditors will request you to create a Report Package using your Class Super profile. A couple of reports that you would need to generate are the Statement of Financial Position; Profit and Loss Report; Notes to the Financial Statements, Trustee Declaration and Member Summary Reports; Investment Summary Report; Detailed Investment Transaction Reports; as well as the General Ledger Account Movement Report.
For a faster auditing process, you can provide us with Auditor Admin access to the funds. With this access, we can log into the Class Super dashboard, view accounts and entries, and generate reports. Note that Auditor Access has a “read-only” setting, which requires an email invitation from your end.
For further instructions on how you can provide your auditor with access to the fund’s Class profile, you can get in touch with our team at Auditors Australia.
BGL Simple Fund 360
To conveniently prepare documents for an SMSF Audit using your Simple Fund 360 business profile, our auditors will ask you to create a Report Pack that will include financial reports, investment reports, letters/minutes, and workpaper reports.
To be more specific, some reports that you need to generate include the following: Operating Statement; Statement of Financial Position; Notes to the Financials; Members Summary and Members Statement; the fund’s Annual Returns; Statement of Taxable Income; Trustee Declaration; Investment Summary, Investment Income; General Ledger; Trial Balance; Bank Statement Rreport; Contribution Summary Report; and Balance Review Report.
When you provide Auditors Australia with Auditor Access to the funds, your auditor can then log into your Simple Fund 360 profile and generate reports, as well as view accounts and entries.
Giving access to the SMSF auditor will reduce the number of queries during the auditing process, thus saving you more time.
You can follow these simple steps to give Auditors Australia Auditor Access to the funds:
- On the main toolbar, navigate to the Fund, click the Fund Dashboard and choose “Share With an Auditor”.
- Enter the details of the auditor.
- Input the auditor’s email address.
- After you have added all the details, click “Invite”.
- We will receive an invitation email that will allow us to complete the process of accessing your profile.
How much does it cost to audit an SMSF?
The SMSF Audits services that we provide at Auditors Australia are competitively priced with the rates depending on the work involved and the complexity of the fund. We offer either an hourly rate or a fixed fee for all SMSF audits and a quick turnaround service.
All audits are performed in Australia by registered auditors with no overseas outsourcing. Our team utilises the latest technology, which potentially minimises the cost of the audit without compromising the quality of the audit process.
If you want to receive a confidential quote for our SMSF Audit Services, please reach out to our team at Auditors Australia.
Auditors Australia: SMSF Audit
Here are the advantages of choosing Auditors Australia to conduct SMSF audits.
Timely Audit Turnaround
Our extensive experience, plus our knowledge of utilising the latest technology allows us to deliver efficient audits in a short amount of time. Once you provide us with all the necessary documents, we endeavour to complete the process and generate an audit report.
Easy Audit Process
Our goal is to make the entire process as quick and as hassle-free as possible. Our auditing services are streamlined with some processes even automated to reduce time spent on paperwork and enquiries.
Qualified SMSF Auditors
Our audit specialists carry decades of experience working with various organisations and entities. You have the peace of mind that the audits are undertaken by our auditors who are registered with ASIC and have a deep understanding of the reporting provisions under super fund regulations.
Working with SMSF auditors who are adept with superannuation legislation and regulations ensures that the fund remains complaint with the rules and reduces the risk of the fund paying unnecessary tax.
Our team at Auditors Australia will provide you with an independent opinion on whether the fund is being maintained solely for the benefit of its members and that relevant records are kept correctly.
Australia-Wide Audit Services
We offer our SMSF Auditor services across Australia including to SMSF Administrators or direct to their accountants in remote locations.
Australian Client Contacts
Utilising technology and streamlined processes allows us to undertake our audit work locally and in accordance with the Australian Auditing Standards. This also means our onshore specialists are readily available to discuss queries with firms or trustees, making the SMSF process faster and more efficient.
An in-depth interaction between the auditor and the accounting firm or SMSF trustee is key for a quality and easier audit process. This allows the auditor to gather the necessary evidence for the audit, which can mitigate possible concerns that may arise during the auditing process.
When you work with Auditors Australia, we will closely collaborate with you, and you can easily reach out to us at any point if you have enquiries or areas for clarification.
There is improved value added to the SMSF when accounting firms or administrators have the ability to get in touch with the auditors throughout the financial year. Our clients at Auditors Australia know that they can contact our team to verify facts and will receive feedback on the subject promptly. This allows our clients’ firms to present the matter to the trustees of the concerned super fund.
Need help from an Independent SMSF Auditor?
Auditors Australia is one of the leading SMSF auditing services in the country. Our expertise covers various types of audits for different companies and entities.
Our commitment is to develop long-term, professional working relationships with our clients providing value beyond the audit report itself via the provision of assurance advisory and support.
Click here to get in touch with our team today.