Self-Managed Super Fund (SMSF) Auditing - What You Need To Know

Under Australian superannuation law, self-managed super funds (SMSF) must be audited each year by an approved SMSF auditor. Self-managed super fund auditors play a vital role in helping to maintain the health and integrity of the SMSF sector through annual audits of SMSFs.

At JSA Accounting, we know that SMSF auditors have important responsibilities. Our role, as an Auditor, is to ensure that your fund complies with the legislation governing super funds as well as to examine the accuracy of your fund’s accounting records.

JSA Accounting is registered with Australian Securities and Investments Commission (ASIC) to provide independent SMSF auditing services. Our team is committed to ongoing education and training to fulfil our role as SMSF auditors with integrity and professionalism.

What is an SMSF Auditor?

An SMSF auditor is responsible for examining self-managed super funds’ activities and financial statements to ensure they comply with superannuation law. The auditor must report any breaches or non-compliance issues to the fund trustees and the Australian Tax Office.

SMSF auditors must be completely independent of the fund. That means they must not have any financial interest in the fund or have any personal or business relationships with fund members or trustees. The auditors must not be the accountant or administrator who prepares the financial statements. The auditors must also be registered with ASIC to perform SMSF audits.

Why do I need an SMSF auditor?

Under Australian superannuation law, it is actually a requirement for self-managed super funds to be independently audited each year. The fund’s trustees are responsible for appointing an SMSF auditor each year at least 45 days before your SMSF annual return (SAR) is due to be lodged. Each year, an audit is required, even if no contributions have been made.

What does an SMSF Auditor look at?

A self-managed super fund auditor conducts a financial and compliance audit on the fund. During the financial audit, they will analyse your fund’s financial statements in accordance with Australian Accounting Standards. They also check to ensure your fund is compliant with all superannuation legislation.

Once they have performed your financial and compliance audit, they must complete an independent auditor’s report document for the ATO. They will provide a copy of this report to the SMSF trustees within 28 days of receiving all relevant documentation.

If they identify any breaches of superannuation legislation during the audit, they must report them to the ATO. We will however work with you to help you rectify any breaches and minimise any potential penalties.

What information will you need to perform an SMSF audit?

In order to get started on your SMSF audit, we will request information about your account and transactions for the previous financial year. This includes all financial and bank statements for the period. We are happy to accept these from your professional advisor if you have appointed someone to oversee the fund for you.

We will advise you if any rules have been breached and what action needs to be taken to correct any breaches.

How will you help me rectify breaches?

If we identify any breaches or contraventions during the audit, we will ensure we maintain open communication to guide you through the process. Our specialist team of SMSF auditors has extensive experience dealing with simple and complex breaches and is always available to discuss your options.

Can I audit my own SMSF?

No. It is a legal requirement to appoint an independent auditor to audit your SMSF each year. Under Australian law, the auditor must be wholly independent and be registered with ASIC to undertake self-managed super fund audits.

JSA Accounting SMSF Auditing Services

At JSA Accounting, we offer a comprehensive SMSF Audit service to help you stay on top of your fund’s compliance obligations. Our experienced team of ASIC approved SMSF Auditors are specialists in auditing self-managed super funds. You can rely on us for an efficient, thorough and stress-free SMSF audit.

With our competitive fixed-fee structure, you can be confident there are no hidden surprises. We have refined our business processes to simplify and streamline the SMSF Audit process. That means we can provide SMSF auditing services to clients right across Australia from our offices in Adelaide.