Everything You Need To Know About SMSF Audits

The Self-Managed Pension Fund Auditor (SMSF) has received a lot of media attention recently after the Board of Professionals and Standards of Accounting Ethics (APESB) issued new and updated independence guidelines on how SMSF audits should be conducted in the future.

The SMSF must be audited annually and the auditors must be independent of the fund and the auditors or administrators who prepare the financial statements. To know more about the SMSF audit report, you can simply visit motionaccountancy.com.au/self-managed-super-funds-service/.

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The audit focal points for this financial year include:

Benefit Payments: Documentation to support the distinction between annuity payments and lump sum benefit payments and an exemption monitoring agency for any early withdrawals under COVID-19.

Property Valuation: Will property valuation be affected by events in 2020? Is now a good time to get new grades or records? ATO advises chartered accountants to seek expert opinion/independent appraisal or real estate investment appraisal of the year.

Ownership and Lease Benefits: As a manager, have you offered rental benefits to your tenants due to the COVID-19 pandemic? The auditor will request copies of all correspondence between SMSF and the lessee, as well as all documentation provided by the lessee to support his request for a reduction in rent.

An SMSF audit should not be a difficult process. In principle, the auditor will not ask for more documentation than you, as the trustee, must now evaluate your SMSF transactions and investments on an ongoing basis.