SMSF Auditor

SMSF Auditor

A Kingston & Knight Audit SMSF auditor can perform the required yearly compliance audit and financial audit of your self-managed super fund (SMSF). Your SMSF is the key a retirement worth waiting for, without the hidden fees and payments made when you invest your super in a large corporate or industry fund. Better control over where, when and how your retirement savings are invested can lead to significantly better average returns than traditional super funds. However, managing your own superannuation comes with additional responsibilities, including yearly reporting of SMSF operations to the Australian Tax Office (ATO).

In Australia, all self-managed superannuation funds are required to appoint an approved SMSF auditor a yearly compliance and financial audit of the SMSF’s operations. An SMSF auditor who is approved by the Australian Securities and Investments Commission (ASIC) must be appointed by the fund’s trustees at least 45 days before the date that the SMSF’s annual return is due to be lodged with the ATO. Once appointed, the SMSF auditor has 28 days from when they receive the required documentation from trustees to complete the audit and compile an independent auditor’s report for the client SMSF. The SMSF’s annual return cannot be lodged with the ATO until the audit process is complete.

Kingston & Knight Audit ensure that your SMSF audit is conducted within your stated timeframe, with a rapid audit turnaround on our competitively-priced SMSF auditor services in Melbourne.

Audit Plan

Your yearly SMSF audit begins when an audit plan is created during your initial consultation with a Kingston & Knight SMSF auditor. The audit plan is vital to the successful completion of your SMSF compliance audit and financial audit, as it sets out the audit timeframe, lodgement date, outline of the audit process, and characteristics of the client SMSF.

To assist your SMSF auditor in completing a detailed audit plan, you need to provide the documentation and information they require to assess, document and form opinions on matters relating to the SMSF’s operations and compliance with regulations / standards. SMSF trustees should ensure that documentation for all transactions and activities involving their fund are kept secure and in an accessible format. Your Kingston & Knight Audit SMSF auditor will clearly identify in the audit plan any documentation or information they will require during the audit process. If the appointed SMSF auditor requires further information or supporting documentation when performing the audit, trustees must provide the requested information within 14 days of receiving a written request from the auditor. pk

The SMSF audit plan will also set out the supporting documentation / audit files to be submitted with the annual SMSF return. This will include copies of the following:

  • letter of audit engagement – a formal document provided by the appointed auditor which confirms their appointment to conduct the SMSF audit as well as the scope of the financial and compliance audit processes. Your letter of audit engagement is a very important document which ensures both the appointed auditor and the SMSF trustees understand the nature and extent of the SMSF audit;
  • representation letter – another formal document provided by SMSF trustees following their appointment of an approved audit. The representation letter confirms trustees acknowledge their responsibility to comply with superannuation laws / regulations and, to the extent of their knowledge, have approved the contents of the financial statements;
  • management letter – any findings of concern to the appointed auditor will be documented in a ‘management letter’ which states these concerns and lists the relevant findings;
  • working papers – clearly accessible written records which other auditors and investigators without previous connection with the current audit could understand. Working papers are provided by the appointed auditor, ensuring that the nature of the audit, audit plan, evidence obtained, findings, and conclusions are documented. Working papers must also clearly identify whoever performed work on the SMSF audit, dates that work was completed, significant discussions with trustees relating to the audit, and any reviews of work completed during the audit;
  • final SMSF financial report, signed – a signed copy of the SMSF’s finalised financial report, along with relevant accounting records and information, for the time-period under audit; and
  • ATO-approved audit report – a signed copy of the final audit report provided by the appointed auditor upon completion of an SMSF audit, including qualifications and opinions. For an SMSF audit, the audit report must use the approved form designated by the ATO.

Any correspondence with the ATO regarding the SMSF in the period under audit should also be kept for use as supporting documentation as stated in the audit plan.

Audit Process

The SMSF audit process involves two main parts; the financial audit and the compliance audit:

Financial audit

Appointed SMSF auditors must complete a financial audit of the SMSF’s final financial report in accordance with the auditing standards, including an expression of opinion based on audit findings. The financial audit process involves systematic analysis of the SMSF’s financial report as well as the evidence for statements made in the financial report, including an operating statement and statement of financial position. For defined benefit funds, a statement of net assets / statement of changes in net assets is also required.

Compliance audit

The appointed SMSF auditor, in-line with the Standards on Assurance Engagements, must audit the compliance of the SMSF with the Superannuation Supervision Act and Regulations. This involves assessment of internal controls, risk of contraventions, risk testing using appropriate evidence, and an evidence-based conclusion regarding the fund’s compliance.

The details of the audit process will vary depending on the nature and extent of the individual SMSF audit. Your audit plan will contain more detailed information about the SMSF audit process.

SMSF Auditor Melbourne

Kingston & Knight Audit deliver SMSF auditor Melbourne services that are accessible, competitively-priced, and performed to the highest professional standards. Our Melbourne auditors can complete both the financial statement audit and compliance audit components of your yearly self-managed super fund audit within a timeframe specified by you. To learn more about Kingston & Knight Audit SMSF audit services, contact us on 1800 283 471 or via email at and obtain your free telephone consultation with an ASIC-approved SMSF auditor Melbourne.