FAQs

As the trustee of a self managed super fund (SMSF) you have a responsibility to appoint an approved auditor to audit your fund each year. So who is an approved auditor and what exactly do they do?
An approved auditor must be registered with ASIC as an SMSF Auditor. Hales Douglass and Your Super Solutions auditors comply with this requirement.
Although your accountant could be qualified to perform your audit, the Auditing and Assurance Standards Board has stated that an accountant cannot perform both the accounting and audit of an SMSF and remain independent. The Tax Office has been targeting funds for review whose accountant also provides their audit services, with this information now required to be disclosed in Part I of your annual return. Smaller accounting firms must arrange for client SMSF audits to be done by a third party. Relatives or other business associates of the accountant are also prohibited from auditing accounts prepared by the accountant.
A good quality audit will first and foremost provide comfort that your fund is complying with the law. If your fund is deemed non- complying it could have to pay 45% of its assets to the Tax Office. This is generally a cost which makes the risk of non compliance far too great to take. A good auditor will also help you correct errors, proactively manage emerging issues and assist you in negotiating your way forward with the tax office.
Our recommendation would be to contact your accountant first. Your accountant will be able to recommend an approved and reputable auditor for your fund and often will coordinate the entire audit process for you.
Any real estate technically needs to be valued every year. Best practice will have a valuation by a registered valuer every 3 years.
If you rent a commercial property to a related party you will also need a market rental valuation. TIP: Get this done at the same time as your property valuation.
You have to retain financial statements and tax returns for 5 years.
Your auditor has to comply with Auditing Standards that only require material/significant breaches to be reported.
The best and least
 painful audit is an open and honest one. If you find your auditor is intimidating, combative or just simply unhelpful then ask around. Our role as your auditor is to help you comply with the Superannuation law and our philosophy is to make audits a valuable
exercise, rather than a witch-hunt.

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How do I know if my business needs an audit?

CASE STUDIES

Consequences of inaccurate workers’ compensation record-keeping & lodgement: While workers compensation can seem like a bugbear for employers, it’s important to ensure that your records are kept up to date and accurate, and your ‘Actual Declaration of Wages’ lodged. An audit we assisted with recently highlighted the importance of this.

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Avoid these 4 top SMSF mistakes

August 9th, 2015|Comments Off on Avoid these 4 top SMSF mistakes

Ensure you avoid these 4 common breaches. (A breach occurs when a fund fails to comply with the Superannuation law). • Loans made to related parties • More than 5% [...]

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Please contact David on 1300 389 839 or email for further information.