SMSF auditors are required as part of your lodgement and reporting obligations. The job of a SMSF auditor is to review your fund’s financial statements and make sure super laws have been complied with.
Appointments should be done at least 45 days before the SMSF annual return is lodged. Failure to appoint an auditor in time could lead to an overdue lodgement.
Who to Appoint?
A SMSF auditor must be:
Registered with ASIC. They should appear on the SMSF auditor register
Registered SMSF auditors will have a number, this number will be required on your SMSF annual return
Any auditor you chose must be independent. Meaning they should not audit any fund in which they hold a financial interest in, or a personal relationship with the members or trustees of the fund.
When is an Audit Required?
An audit is always required to be done annually by an approved SMSF auditor. The audit must be done even if no contributions or payments are made in that financial year.
Audit Report / Dealing with Contraventions
Your SMSF auditor will provide the trustees with an Independent Audit Report (IAR) within 28 days of completing the audit. This report should be read carefully as it will contain any issues or contraventions found in the fund. The information from the report can then be used to populate Q6 of your SMSF Annual Return.
If found, the trustees must rectify as soon as possible, or develop a plan to rectify any contraventions found in the fund. Depending on the contravention, your SMSF auditor may be required to report certain contraventions to the ATO, and if the contravention remains unrectified you’re encouraged to make a voluntary report to the ATO.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au