Self managed super fund (SMSF) audit and compliance strategies can help trustees to meet their legal responsibilities, to reduce administrative burdens and to avoid unnecessary breaches of superannuation law.
SMSF trustee(s) must know and understand their obligations to ensure their SMSFs are compliant. This article is Part 1 of a summary of those obligations.Kate Hocking
SMSF trustee(s) must appoint an 'approved auditor' in each income year to perform a financial and compliance audit of the fund's operations for that year. The auditor must provide the trustee(s) with a report in the approved form. The trustee(s) must provide the auditor with all the relevant documents necessary to conduct and finalise the audit within the allocated timeframe.
Remember, any audits of SMSFs undertaken for the purposes of the Superannuation Industry (Supervision) Act 1993 (SIS Act) must be conducted in accordance with the Australian Auditing Standards.
SMSF audit papers should (at the minimum) include:
A financial audit must include at a minimum:
An SMSF auditor must ensure that the fund has satisfied the five main areas of compliance, namely:
The trustee(s) carry out their administrative obligations.
We have prepared an auditing checklist of the Cleardocs SMSF deed against the Australian Accounting Standards Board SMSF Trust Deed Audit Planning Checklist. You can view a copy of this document here. This document is useful to review in preparation for an audit.
When an auditor discovers a compliance breach, it must:
The ATO recommends that the auditor notify the trustee(s) as soon as possible after the breach is detected so that the trustee(s) can respond to the issue before the audit is finalised.
For more information, contact Maddocks on (03) 9288 0555 and ask for a member of the Maddocks Superannuation or Tax and Revenue Team.
You can read earlier ClearLaw articles on a wide range of SMSF topics here.
Download a checklist of the information you need to order a document package.
 Section 133 SIS Act. The form of audit report is available from the ATO and titled SMSF — Audit Report (NAT 7573).
 Self Managed Superannuation Funds Guide — Roles and responsibilities of approved auditors, ATO, available at http://www.ato.gov.au/superfunds, pg 12.
 Self Managed Superannuation Funds Guide — Roles and responsibilities of approved auditors, ATO, available at http://www.ato.gov.au/superfunds, pg 13.
 See sections 17A and 19 of the SIS Act.
 Exclusions apply in relation to investments in a derivative product see 13.15A SIS Reguations.
 Self Managed Superannuation Funds Guide — Roles and responsibilities of approved auditors, ATO, available at http://www.ato.gov.au/superfunds pg 9.
Melissa is a lawyer in the Maddocks Commercial team.
Melissa has been involved in acting for a range of commercial and professional industry clients.
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For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of their team.