Registered and approved SMSF auditors play a critical role in maintaining the financial health and integrity of the SMSF sector through annual audits.
Professional Requirements of SMSF auditors
An SMSF auditor can conduct audits if he or she is registered with the ASIC. He also needs to have a valid SMSF auditor number or SAN. He or she must also be able to meet obligations in the Superannuation Industry Act of 1993 or SISA and Superannuation Industry Regulations of 1994 or SISR. He or she must also keep auditor details updated with ASIC, complete and lodge annual statements to ASIC and pay the annual statement fee to ASIC.
The SMSF auditor should also comply with auditor independence requirements on the Code of Ethics for Professional Accountants. He or she must also comply with the applicable auditing standards issued by the AUASB, ASA, ASAE, and ASIC. The auditor must also comply with reporting requirements, and report breaches of the laws. He or she must also be compliant to professional development requirements, hold a prescribed professional indemnity insurance and any conditions imposed by ASIC on his or her registration.
ATO works closely with ASIC in monitoring the effectiveness of SMSF auditors. An auditor may be subjected to an investigation or legal action if ATO or ASIC finds any performance or compliance issues. This include failure to meet independence and competency requirements.
Auditing and SMSF
The role of an SMSF auditor is to execute an annual financial and compliance audit of the operations of an SMSF.
Trustees must appoint an SMSF auditor not later than 45 days before the annual return is due and provide the auditor with relevant documents to conduct and finalise the audit. If the auditor requests more information from the trustees, a written request should be made and they should provide them within 14 days of receipt of the request.
It is required that the audit is completed and that an Independent Auditor’s Report or IAR will be given to the trustees within 28 days after receiving the relevant documents.
Financial and compliance audits should be completed before the SMSFs annual return can be lodged to ATO.
Auditors are required to complete the audit and produce a report to be given to the trustees within 28 days of receiving relevant documents from the SMSF. If information relevant to the audit needs to be requested from the trustees, they must provide them within 14 days after they have received your written request.
To support and regulate SMSF auditors, ATO works closely with ASIC.
The compliance approach of ATO is created to help and support SMSF auditors and determine and deal with high-risk auditors. This is done through:
- Publication of materials and guidance that will help SMSF auditors understand and help them comply with their professional obligations and the super laws
- Providing specialist support products like superannuation audit tool (eSAT) and auditors’ Professional service.
- Providing information and advice where ATO data indicates areas of concern.
- Reviews and audits SMSF auditors where there are some concerns with compliance and behaviour.
Help and Resources
Some tools and resources that can help SMSF auditors in their work include SMSF auditor resources, professional-to-professional support, and other support and guidance services.
SMSF Auditor Resources
Super Professional 2 Professional service will help you with circumstances not covered by existing material you can access. ato.gov.au/SP2P
Electronic Superannuation Audit Tool or eSAT is a preferred channel for auditor breach reports. ato.gov.au/eSAT
Webinars. Attend these online webinars or view them at a time that suits you. ato.gov.au/smsfwebinars
Ato.gov.au. Will help you find more information fast. ato.gov.au/smsfauditors
Products and tools designed for trustees may also help auditors do their work.
SMSF news provide updates, case studies, and Q&As. ato.gov.au/smsfnews
SMSF videos are short educational short films or videos that explain SMSF topics. ato.gov.au/smsfvideos
ATO app includes SMSF resources, checklists, key rates, and dates. ato.gov.au/app
Ato.gov.au gives users useful information on SMSF lifecycle. ato.gov.au/smsf
Kingston Knight Audit are the Auditor Melbourne experts to contact when dealing with your trust account audit, SMSF Audit, financial statement audit, and internal audit requirements. Contact us today, Kingston & Knight Audit offers a free telephone consultation to establish how we can best help you achieve the assurance and compliance you require.