SMSF Audits – What do you need to do?

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SMSF Audits What do you need to do?
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• In a series of articles, we outline some of
  the things you should know or might like to
  know regarding superannuation fund audits.
• So far, we have looked at why your fund needs
  an audit (here) and who can be an auditor (here).
• In this article, we look at what you  as a
  trustee of your fund need to do to get your
  funds audit done.

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What do I need to provide to my auditor?

• Basically, lots of papers and reports. If you
  are going to have your audit done efficiently,
  you need to provide a stack of stuff.
• Once you have an approved SMSF auditor, the
  audit process can begin.
• Once it has begun, the auditor will require a
  variety of information from the trustees and
  members. Its in your best interest to provide
  these in a timely and efficient manner in order
  to ensure that your SMSF auditor can complete
  their work on time.

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• If you can get these pieces of information ready
  ahead of time and supply them proactively, its so
  much the better.
• What youll need to provide can include stuff on
  this checklist here (link to separate paper).
• As you can see, it seems like a lot, right?
• It doesnt need to be an onerous process to bring
  all this together and it shouldnt be. As long as
  you have good record keeping, all of this
  information will be relatively easy to collect
  together come audit time.

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Apart from record keeping, there are a few other
things you need to do

• Appoint the SMSF auditor The trustees of an SMSF
  (i.e. you, and anyone that youve set up the SMSF
  with) are required to appoint an auditor at least
  45 days before the auditors report is due. The
  auditors report is usually due by the middle of
  May following the end of the financial year so,
  for an audit for the 2018 year, the audit report
  is due by the middle of May 2019, and the auditor
  should be appointed by the end of March 2019.

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• Sign stuff You will need to provide the auditor
  with an audit engagement letter that confirms
  your acceptance of the appointment and clearly
  states the scope of the financial audit and the
  compliance audit with the super laws. It should
  prevent any misunderstanding between the trustees
  and auditor about the nature and extent of the
  audit.
• Your auditor should provide you with a letter
  to sign and return.

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• Sign more stuff You will need to supply the
  auditor with a letter of representation, which
  states that the trustees believe the financial
  statements to be a fair representation and that
  the SMSF complies with superannuation laws.
• Again, your auditor will probably provide you
  with a letter to sign and return.

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• Answer queries You will also need to respond to
  any queries from the SMSF auditor within 14
  days of getting the queries. That is not a lot of
  time. Keep good records and you should be fine
• Next time what happens if something goes
  wrong?
• If you need any assistance with the SMSF
  audit process, call our registered SMSF Auditor
  Philip Ruth for a chat in our SMSF Ivanhoe office
  03 9499 7444.
• https//gnsgroup.com.au/