How to Speed up Your SMSF Audit

Everyone involved in auditing SMSFs wants the process to be as smooth and hassle free as possible.  Most Trustees enjoy the freedom of being able to invest their superfunds as they choose, however, few enjoy the administrative side involved.  Helping them to pull all the relevant information together and including it as part of the initial submission to us will speed up the administrative process and make it as painless as possible.

When it comes to auditing SMSFs, we rely on the materials that are provided and if there are gaps then precious time is spent chasing you and/or your client trustees for the relevant info.

To improve the experience, make sure that your clients have ticked off the following top 10 essentials:

1. Signed ATO Trustee Declarations
   It is a legal requirement that any fund that was established after 1st July 2007 needs to have a signed ATO Trustee Declaration.
2. Set up documentation
   If we hold originals for your Investment Strategy and Trust Deed then only updates are needed at audit time.
3. Engagement documentation
   Engagement Letter and Trustee Representation Letters need to be supplied and held on file by the Auditor.
4. Bank Statements
   These are needed to confirm all cash and term deposits held by the fund and transactions during the year especially those relating to contributions and pensions.
5. Share details
   A portfolio listing of listed and unlisted shares and unit trusts needs to be supplied confirming the values held in these securities as well as documentation to support the values.
6. Proof of purchase for precious metals
   If holding physical precious metals, proof of purchase is not sufficient to confirm holdings at 30 June. If these are not held at a mint or other depository that can provide a 30 June holding confirmation, then a declaration stating holdings is needed.
7. Collectibles documents
   Statutory Declarations confirming that Collectibles are not on display, are held in secure storage and that there is no private use of the items.  For collectibles purchased post 30 June 2011 proof of insurance within 7 days of purchase and a storage plan outlining secure storage at an unrelated property will be required.
8. Property valuations
   A third party appraisal of property valuation every 3 years and support for each year’s market value.
9. Loans
   Details of any related party transactions or private loans from the fund.
10. Related unit trust
    If there are any related unit trusts then the financials and supporting documentation needs to be supplied.

While other information will be required to proceed with your audit depending on your funds activities, the items listed above are the ones that we frequently see missing from material submitted for auditing. A more comprehensive checklist is available here.