Your accountant cannot audit your SMSF, as they are not independent if they have prepared the tax return and the financial statements of the SMSF. An SMSF auditor has to be registered and licensed with ASIC.
SMSF auditors also assist and work with the trustees and the accountant with matters that may be relevant to keep the SMSF compliant, that is, to retain the complying fund status.
The SMSF auditor should check the trust deed, checks the ASIC Corporations act, checks the SIS act, checks the Tax act and checks for compliance issues.
The auditor does not necessarily audit the current year, as they may have to look for events that have occurred, may be occurring, or could occur in the future.
When an audit contravention has occurred, the SMSF auditor has to report this to the ATO, along with what steps, you as the trustee of the fund implement to rectify the audit contravention.
A contravention is when you have breached the rules. SMSF auditors are required to report breaches when they have occurred. The SMSF auditor will liaise with the trustees and the accountant when this happens.
If you have an existing SMSF, we invite you to contact us if you would like to select your own independent SMSF auditor instead of using your accountants preferred auditor. To do this, you simply contact us and we will then advise you what you need to do.
If you have a more complicated structure like an LRBA and property in your SMSF, the audit process can be a bit more complicated.
If you would like us to set up and assist you with an SMSF, and an LRBA and property, we can do that. Sometimes the banks require an SMSF auditor and a financial planner to sign off on loan documents for an LRBA property loan within your SMSF. We can also do this role for you as our client.
We have been working with SMSF’s since 1996, almost 20 years, so we are well experienced in this area of SMSF knowledge and advice.
The author, Ian Mckenzie is an ASIC registered SMSF auditor and a member of the SMSF Association.