Understanding The Annual Audit on SMSF’s
Why Is My Super Fund Audited?
If you run a SMSF, it is a statutory obligation under the Superannuation Industry (Supervision) Act (SISA) and Superannuation Industry (Supervision) Regulation (SISR) that your SMSF is audited annually by an approved independent auditor.
A SMSF audit involves a highly comprehensive analysis of your fund’s financial and compliance position and adherence for the financial year in question.
What Does The Auditor Look For In An Audit?
When auditing your SMSF, the Auditor will examine the following:
- Superannuation Contributions– determine whether all contributions received are compliant with the governing rules of the Fund Trust Deed and SISA as well as ensure that all contributions received are correctly recorded and allocated to members of the fund.
- Investment/ Assets–obtain sufficient evidence to verify to the ATO that:
- the investments exist;
- the investments are legally owned by the superannuation fund;
- the investments are accurately valued as at 30thJune each year;
- all income and expenses relating to that investment are correctly disclosed and treated by the fund; and
- all investments comply with the governing rules of the fund, the trustee’s investment strategy and SISA requirements.
- Benefits– ensure that all benefits paid are in accordance with the governing rules of the fund and SISA requirements.
- Income/Expenses– review all expenses paid by the fund and ensure that these are recorded and documented in accordance with the governing rules of the fund and SIS requirements.
What Happens Next?
At the completion of your SMSF audit, the auditor will form an opinion on two things. Firstly, based on evidence gathered and checks performed, the auditor will form an opinion about the fair presentation of the financial report for the reporting period. Lastly, express an opinion as to whether the SMSF has complied with the appropriate legislation (SISA and SISR).
Although Advivo does not conduct SMSF audits (Advivo believe all auditors should be completely independent), we are more than happy to and pride ourselves on our ability to effectively manage your SMSF reporting and compliance obligations. Our Superannuation specialist, Jenny Rodrigo, has been caring for the accounting and compliance needs of SMSFs for the last 19 years, over the last nine of those years operating her own business specializing in SMSF administration, prior to joining Advivo
If you have any questions about your own SMSF or establishing a DIY SMSF please contact us on 07 3226 1800 for a no-obligation consultation. You can also use our Contact Form to enquire.
Written by: Jenny Rodrigo, Advivo Superannuation Specialist