Australian SMSF Audits is an Independent SMSF audit accounting practice serving Accountants, so Funds can comply with the SIS Act and maintain their status as being a complying fund. The Practice Principal, Eric Taylor, is a Registered SMSF Auditor & a Registered Tax Agent.
We provide independent audits of Self-managed Superannuation Funds at competitive rates using state of the art, cloud based audit software. It is our goal to maintain a prompt turn around of all funds accepted for audit, subject to the provision of the necessary information. The independent auditing of Self-managed Superannuation Funds is a compulsory legal requirement that verifies Funds are complying with the necessary legislation and therefore qualify for the concessions that a Fund is entitled to.
We undertake the auditing of SMSFs on behalf of accountants who have prepared financial reports & income tax returns for funds and in limited cases for the trustees of funds who have undertaken the preparation of the reports and returns themselves. We now only accept new appointment directly from trustees where the financial reports have been prepared using recognised SMSF accounting software such as BGL360 of Class.
Trustees may find that from 2020 they are advised by their accountants that they need to change the fund's auditor. Why is this happening?
The accounting profession is controlled by a body known as the Accounting Professional & Ethical Standards Board (APESB). This Board sets a number of standards that must be complied with by the accounting profession, referred to as APES. One in particular is APES 110, which is a Code of Ethics for all accountants. APES 110 was recently reviewed, with the new Code being effective from 1 January 2020. One area within APES 110 relates to auditor independence. This has now been reviewed by the ATO, who have issued guidance on how they believe the new Code applies to SMSF auditors.
While the changes do have some complexities, the net result is that many situation where an auditor was considered acceptable, the new Code states there there is insufficient independence. These include:
Where an accounting firm has multiple partners, the auditing of work controlled by one partner can no longer be audited by an other partner within the firm. This also applies to firms within the same group, for example BDO branches in different states;
It was previously common for 2 accountants to mutually agree to audit each others super funds, A audited B's works & B audited A's work. The new Code identifies this arrangement as not having sufficient independence.
Australian SMSF Audits do not prepare financial reports. We are solely an audit practice and maintain the necessary independence to comply with APES 110.