Please find some of our common frequently asked questions below.
Why should I use an independent audit firm to conduct my SMSF audits?
With the continued and increasing focus by the ATO on ensuring SMSF audits are independent, this is a crucial consideration for your practice. In most instances, it is no longer appropriate for an auditor to audit an SMSF where the auditor, their staff or firm has prepared the financial statements. The ATO is also focusing on large scale reciprocal audit arrangements.
Do you provide administration or accountancy services for SMSFs?
No. We are a firm solely dedicated to the provision of SMSF audits. We are therefore truly independent and do not compete with other services you offer.
Will you contact my client directly?
No we will not contact your client directly. All our communication is channelled through yourself as the Accountant or Financial Advisor so that you can present information to your clients in a consistent manner. Saying that we are always happy to assist you in communicating with your client on a tricky issue at your request.
Do you need to issue an Engagement Letter every year?
ASA 210 does not require a new engagement letter to be issued every year, however one may be required where there has been a change of circumstances. GS 009 lists some instances where an auditor may deem it appropriate to confirm the terms of an engagement or issue a new engagement letter. This may include where a revision of the terms of the engagement has occurred, where there has been a change in trustees, where significant changes in the SMSF have occurred and where regulatory and/ or legislative changes including changes to the ATO’s approved audit form.
What do you deliver at the end of each audit?
Upon completion of the audit you will receive an Audit Report in the format specified by the ATO and a Trustee Letter to be provided to your client. In the event that an Auditor Contravention Report needs to be made, you will also receive a copy of what was submitted to the ATO. (This would also be discussed with you in detail prior to its submission to the ATO).
What happens if an issue is found during the audit?
Any issues encountered during the audit will be communicated to you as soon as they are identified. We will work with you to solve an issue where this is possible or to implement a plan to fix the issue going forward. We welcome early discussions on potential issues as they arise during the year. The ATO has recently introduced an early, voluntary disclosure service for Trustees which can be used to communicate and agree a resolution for issues prior to the annual audit. We can assist you with using this service.
https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/News/Making-a-voluntary-disclosure/
Do you have access to the ATO P2P Service?
The ATO has introduced a peer to peer service for SMSF auditors to obtain non-binding advice on technical issues facing their clients. We are able to access this service without providing the name of the SMSF for particularly difficult or unique issues.
Are there any other costs associated with the audit?
For SMSFs with property assets we will need to obtain a title search each year. This will be billed to you.
Where a bank confirmation is required, the cost is usually debited directly to the client’s bank account by the bank.
Who conducts the audits?
All out audits are conducted by a member of our Melbourne based team and reviewed by Lee Evans. Lee is available to discuss any issues or questions with you directly. We aim to provide a personalised and professional service.
How will you bill me for Audits?
We usually provide a monthly bill for all completed audits to Accounting and Financial Advisory firms who provide us with a number of audits. We are however able to tailor our billing cycles to match the way you bill your own clients.
I am a Trustee with a single annual audit required for my own SMSF. Will you do this?
Yes, we are happy to do individual audits.