The Detailed Process of SMSF Audit The SMSF audit is an important aspect of a self-managed super fund in Australia. It is a mandatory process and must conduct by an independent auditor registered with the Australian Securities and Investments Commission (ASIC). The auditor is responsible for evaluating a fund’s financial statements and examining its compliance with superannuation law. The auditing of SMSF is an advantageous step that as a positive review makes trustees be clean which is good for their reputation. It mainly consists of two parts:
Financial report Compliance report
The above two are the main categories of documents. The financial report includes:
Signed engagement letters by trustees Balance sheet, income statement, and member statement Completed annual tax return Signed trustee representation letter Supporting documents for financial reports
The compliance reports include:
Permanent files of self-managed super fund If the fund is in pension mode, copy of signed pension documentation Actuarial Certificate ASIC Annual Return Life insurance certificate
After the financial and compliance auditing, the auditors complete an independent auditor’s report document provided by ATO. This report is given to the trustees within 28 days of auditor getting all relevant documents. Trustees should work with their auditor to fix any breaches as early as possible. One of the main responsibilities of a trustee is that they should submit an audited annual report to ATO and make sure the full payment of tax obligations. The costing of the auditing process is influenced by key events: