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As you may already know, running a self managed super fund comes with a lot of responsibilities and making sure that your SMSF is audited annually by an approved SMSF auditor is one of them.
As an SMSF trustee, it is your responsibility to ensure your superannuation audit is done each year. For that, you must appoint an approved auditor at least 45 days before the due date of the SMSF return. During the appointment, you will get a letter of engagement from you SMSF auditor explaining the extension of the proposed audit.
It is extremely important that your superannuation audit is performed by an auditor that is registered with the Australian Securities & Investments Commission (ASIC). According to the ATO, your auditor must meet the following requirements:
- The auditor must have a SMSF auditor number (SAN)
- The auditor must also be independent – this means that he/she must not hold any financial interest in your SMSF, or should not have a close personal or business relationship with you or the other trustees of your SMSF.
- The auditor must conduct a financial and compliance audit of your SMSF. A financial audit is what enables your auditor to analyse your fund’s financial statements and a compliance audit assess your SMSF’s compliance with the rules of the fund.
Your should know that it is your responsibility to provide your auditor with all the documents he/she needs to conduct the superannuation audit. If he/she requires your further information, it should be provided within 14 days.
What should you expect from your approved SMSF auditor?
Before beginning your superannuation audit, your auditor will require a letter of representation from all the SMFS trustees. This letter should be a statement from the trustees saying that their SMSF complies with the laws of the super fund and they have no doubts that the financial statements are a fair representation.
Your auditor should them provide you with an audit report before the established date of your SMSF’s annual return. He/she should also provide you with an audit finalisation report.
Who can become an approved SMSF auditor?
As mentioned above, you should only appoint an approved SMSF auditor who is registered with the Australian Securities & Investments Commission (ASIC). To be registered as an approved SMSF auditor a person must:
- Be an Australian resident
- Pass a competency examination
- Have the required levels of practical experience
- Hold certain education qualifications
