SMSF Audit Services

As part of our annual service, we arrange the SMSF Audit on behalf of the trustees and try to prepare you in advance so that the process is as painless as possible.

All Self Managed Super Funds must conduct an SMSF Audit annually before a tax return is able to be lodged to the ATO. This auditor must be independent to the accountant who prepared the files, where their job is to be sceptical and require proof of the veracity of the reports prepared.

The cost of the audit service will vary depending on the type of investments that the fund holds as well as the type of software the fund is prepared with. For example, a fund that has been manually prepared on a spreadsheet or a non-cloud software package will cost a lot more to audit than a fund prepared on Class due to the time savings that modern technology provides.

The information that the auditors will require is extensive depending on the asset classes. We assist our clients throughout the audit process and many of the items listed below will be contained within the Class Super software package or be able to be obtained by our staff.

Please see below a non-exhaustive list of what may be required.

Legal & Compliance Documents

• SMSF deed and any amendments if applicable.
• Signed member applications.
• Signed trustee consents.
• Signed ATO trustee declarations.
• Bare trust deed if applicable.
• Trustee minutes, representation letter and signed declarations.
• The investment strategy of the fund for the current income year.
• Prior year financial statements, tax return & auditor’s report.
• ASIC Extract for the corporate trustee.
• Work test declaration where applicable.
• Signed engagement letters for the accountant & auditor.

Financials & Tax Documents

• Current year financial statements, tax return, tax reconciliation and ATO portal reports till the date of the audit.
•  And where applicable:
  • A copy of the Actuarial Certificate.
  • Rollover statements.
  • Pension establishment/commutation/restructure documents.
  • Confirmation of contributions and any Div293 issues.

Investment Substantiation

This will vary greatly depending on the type of investments that the fund holds but the basic rule is that you must have a document to substantiate every transaction and holding value within the fund.

For example:

• Copies of bank statements for the year clearly showing the name of the fund and the transactions for the financial year in question. This must continue through to the date of the audit to check for subsequent events. The same applies to term deposit statements.
• For listed securities, the transaction statement and dividend statements.
• For unlisted securities, a copy of the annual audited financials for the entity, a copy of its corporate extract, share certificates, tax return. Also, where applicable, a statutory declaration confirming any related party aspects of the transaction.
• For options trading we need the transaction statement and a copy of the monthly open position statements for the financial year in question going through to the audit date.
• For properties, whether commercial or residential, you will need a copy of the purchase contract and settlement statement, certificate of title, council rates, an independent market valuation of the property, current lease agreement or property management statements and invoices for any expenses paid from the fund such as insurance, rates, water, repairs, and the like.
• Where a fund is lending money as part of its investment strategy, the auditor will need a copy of the signed loan agreement, the loan schedule, and evidence of current year repayments to meet the subsequent events test along with a statutory declaration confirming there are no related party prohibitions.
• For fund investments in precious metals or collectables, such as artwork, classic cars, coins, or other unique investments, you will need to provide:
  • Purchase documents.
  • Valuations showing the current value on 30th June.
  • An insurance policy for the assets confirming the SMSF ownership and the value insured.
  • In the case of classic cars or motorcycles, a photograph of the odometer reading at the start and end of the year.
  • You will also need to provide some proof of the existence of the asset such as a photo of the bullion with today’s newspaper next to it.
    The reason this is important is that the ATO has caught several people who have bought bullion in their funds, sold it for cash, then pocketed it, effectively stealing from their super fund.