SMSF Audit
What is an SMSF Audit?
Every self-managed super fund (SMSF) must undergo an audit each year. An ASIC-approved auditor must conduct the audit.
The audit covers two areas:
- Financial Audit – We check your financial statements and confirm that assets have the correct values.
- Compliance Audit – We verify that your fund complies with superannuation laws.
You still need an audit even if you did not add money or make payments during the year.
Who Can Do an SMSF Audit?
Only auditors registered with ASIC can do SMSF audits.
To register with ASIC, an auditor must:
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Have a valid SMSF Auditor Number (SAN)
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Pass education and experience requirements
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Pass a competency exam
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Have professional indemnity insurance
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Complete ongoing training
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Be independent from your fund
You can check if an auditor is registered on the ASIC SMSF Auditor Register.
The SMSF Audit Process:
When to Appoint an Auditor
You must appoint an auditor at least 45 days before your SMSF annual return is due.
The auditor needs two documents from you:
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Engagement letter – explains what the auditor will do
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Letter of representation – confirms your financial records are correct and your fund follows the rules
What Documents Does the Auditor Need?
The auditor will check:
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Trustee names and company directors
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Financial statements
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Bank statements
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Meeting minutes
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Tax return
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Contribution records
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Accounting papers
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Share certificates
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Property documents and valuations
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Investment strategy
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Lease agreements (if applicable)
What the Auditor Checks?
The auditor must:
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Look at risks and what matters most
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Gather enough evidence
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Test for rule breaches
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Write down their findings and opinions
What the Auditor Must Report?
To You (the Trustees)
You will receive an Independent Auditor’s Report (IAR) that states:
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Whether your financial statements are correct
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Whether you followed superannuation laws
The auditor must also tell you if they find any rule breaches.
To the ATO
If the auditor finds a serious breach, they must report it to the ATO within 28 days.
This is called an Auditor/actuary contravention report (ACR).
Penalties apply if the auditor fails to report.
The auditor must also tell the ATO if your fund’s financial position is not satisfactory.
Common Audit Problems
Here are the most common issues found during SMSF audits:
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Asset values – assets must be valued at market price each year
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Related-party leases – must be at market rates with proper paperwork
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Private investments – need financial statements and supporting documents
Key Points to Remember:
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SMSF audits are required every year
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Only ASIC-registered auditors can do the audit
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Audits check your finances and compliance with super laws
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You must provide all required documents
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Serious breaches must be reported to the ATO
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Professional help can save you from penalties
We specialise in SMSF audits, tax returns, and accounting services. Book a consultation with our specialist SMSF accountants today at A One Accountants
Frequently Asked Questions:
Q1. How much does an SMSF audit cost?
We charge a fixed fee for audits at $500+GST.
Q2. When does the audit need to be done?
Need to be completed prior to lodging your SMSF annual return. Appoint an auditor at least 45 days before the due date.
Q3. Can any accountant audit my SMSF?
No. The auditor must be registered with ASIC as an approved SMSF auditor.
Q4. What happens if the auditor finds a breach?
They must tell you and may report it to the ATO within 28 days.
Q5. Do I need an audit if I didn’t add any money this year?
Yes. An audit is required every financial year.
Q6. What documents should I prepare?
Bank statements, financial statements, investment records, valuations, meeting minutes, and tax returns.
Related Services:
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Providing SMSF audit documentation