The superfund is subject to the requirements of the Retirement Industry Act 1993 (SISA) and the Pension Industry Regulation Act 1994 (SISR).
Therefore, the auditor prepares the SMSF audit record by using a form approved by the ATO. There is no requirement to file an SMSF audit report with SMSF annual reporting so there is more flexibility in this time depending on how you want to work, but auditors are required to report non-compliance between the Trustee and the ATO.
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Both require that all super funds, regardless of size or type, be audited annually. This exam consists of two parts:
Audit – Examination of IMF financial statements to ensure that they conform to accepted accounting principles.
Compliance Audit – To determine whether the trustee complies with the specific requirements of SISA and SISR.
When actually selecting your SMSF auditor from a list of accredited ones, you want someone who has the following qualities:
Independence – They must not have a financial interest in the funds they investigate or have a close business relationship with a member or trustee
Security – You must have a secure SMSF electronic data transmission service to provide the necessary verification information
Accuracy – They must use every means at their disposal to ensure that each SMSF audit is completed on time
Accessibility – They should only charge for the time actually spent on the audit.
This puts your accountant or financial planner in a good position to outsource, allowing you to enjoy the flexibility and control that SMSF offers.