News : Auditing

Auditing

Key audit materials should be used

SMSF auditors should use key materials such as guidance statements as the basis for their processes to make them as robust as possible.

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ATO, Auditing, Compliance

Static asset values can be legitimate

There can be legitimate reasons as to why an SMSF asset has not changed in value over several years, but auditors must document their presence.

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ATO, Auditing

SMSF auditor independence targeted

Recent action against SMSF auditors clearly indicates regulators are enforcing the independence standards for the betterment of the sector.

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ATO, Auditing, Documentation

Audit files miss trustee fundamentals

SMSF Self-managed superannuation Trustee declarations ATO Paul Delahunty Auditors

The files of many SMSF auditors are currently missing some fundamental documentation elements involving basic trustee obligations.

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Auditing, Property

Second-tier valuation evidence less reliable

SMSF Self-managed superannuation Deloitte Liz Westover Asset valuation Audit evidence

Trustees struggling to get formal property valuation evidence can use other forms of data to support their estimate, but they may be regarded as less reliable by the fund’s auditor.

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Auditing, Compliance, SMSF

Incomplete audit files a key error

Audit file Notation Market valuation Error

Lack of notation in the official files relating to procedures performed as part of an SMSF audit is the most common error made by practitioners.

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Auditing, LRBA, NALI/NALE

Non-commercial LRBAs too risky for auditors

Related-party NALI non-arm's length income LRBA Limited recourse borrowing arrangement Auditor

Related-party LRBAs without evidence proving they are on commercial terms are unlikely to receive approval from SMSF auditors due to NALI risk.

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ATO, Auditing

Platform asset audit guidance issued

Audit report Part A qualification ATO

The ATO has informed trustees that an audit qualification may be unavoidable where evidence to confirm asset ownership held by certain platforms is difficult to obtain.

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ASIC, Auditing, Compliance

SMSF auditors sanctioned over fee source

ASIC SMSF auditors Independence standards ATO Referral

ASIC has suspended the registrations of three SMSF auditors following an investigation that found significant breaches of the independence standards.

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