If you live in the wider Adelaide area and own a self-managed fund an SMSF auditor in Adelaide is a must. Audits get done annually so it’s vital that you seek out and appoint a registered SMSF auditor 30 days before your audit. Choosing the right SMSF auditor isn’t simply about who is the most cost effective. You need to make sure that they are approved auditors.
An SMSF auditor will conduct both a financial and a compliance audit of your SMSF so that they can ensure that you have complied with the superannuation rules in Adelaide. An approved auditor will request a letter of representation from the SMSF trustees. This letter basically states that the trustees of the fund have managed the account within the requirements of the law.
Your SMSF auditor will provide you an audit report before the due date of the SMSF annual return and an audit finalization report. A good SMSF auditor will also provide an audit checklist to ensure that all the documents required are provided. They should also be prepared to advise you should the worst occur. If they are at fault for an auditing breach, will they take the hit, or do you have to pay extra to have them rectify the error?
Check ASIC to ensure that your auditor is registered. You can check this list to see if your auditor has been banned or disqualified. Basically, your auditor has to have a good reputation, but they must also have a reliable turnaround time to complete their work. See that your auditor is proactive rather than a slacker when it comes to dealing with your audit. A lazy or disorganized auditor could make you miss your auditing deadline report and cost you hefty fines.An approved auditor will be registered with one of the following organizations:
- CPA Australia Limited
- The Institute of Chartered Accountants in Australia
- National Institute of Accountants
- Association of Taxation and Management Accountants
- National Tax and Accountants Association LTD
- SMSF Professionals’ Association of Australia Limited
Confidentiality is just as important. So you want to make sure that the firm’s servers are secured when you e-mail your documents to them. Also, ask to see if your audits will get processed somewhere outside of Australia. A SMSF auditor has a legal obligation to inform their clients if their audits will be performed in another country in the terms stated in the engagement letter. If an SMSF auditor outsources, their firm must have an agreement that acts in accordance to the laws stipulated in APES 11, APES 320 and APES 325.
It can be extremely stressful to find a reliable registered SMSF auditor. The professional relationship that you, as the client, build with the auditor must be one of complete confidence and respect and vice versa.