Super Fund Audit – The Benefit of Hiring a Professional
A Self Managed Super Fund (SMSF) is a popular retirement plan among Australians who like to operate their own funds and are not interested in investing in big business that they have no control over. It provides many benefits such as better visibility, high yielding cash accounts, unlisted assets, direct property, direct shares, etc.
But one of the main reasons people opt for an SMSF is that it allows tax concessions on the investment income. However, to be able to enjoy this benefit, there are some rules that need to be followed, including being audited each year by a registered super fund auditor. An auditor will make sure that your SMSF complies with the super laws and that its financial statements are correct.
The super fund audit main reason is to give you guidance on how your fund is going, as well as to ensure that it is in compliance with the ATO rules.
Each year you must appoint an independent SMSF auditor to audit your fund. To be independent, an auditor can’t be related by family or business with the trustees. The appointment must be made at least 45 days before your annual return is due to be lodged. After hiring an auditor, you should give him/her a letter of engagement having details and scope of the audit and all the documents necessary to ensure a proper super fund audit. After making sure that your SMSF is in compliance with the official rules the auditor will give you a comprehensive report which should be provided before the annual SMSF return.
The major benefit of hiring a professional auditor is competence, both time and cost wise. You should be aware that SMSF training can take time and cost a great amount of money and an auditor can ensure your fund can be audited faster and pricey mistakes can be prevented. In other words, with the help of a professional, you will be able to save money in your super fund audit and at the same time avoid lawful issues lead due to improper audit.
Furthermore, it is mandatory by ATO to have third-party SMSF auditors to audit your fund. Even if you have the knowledge to audit your super fund, you still have to follow the law. In addition to official observance, the auditor will ensure that the audit is done following the ATO rules. Professional auditors receive right training and have proper official approval to conduct yearly audits to help you obey the requirements for maintaining you SMSF account.
When looking for a super fund auditor, make sure you choose one that is an approved SMSF auditor, registered with the Australian Securities and Investment Commission (ASIC). This will ensure that the auditor has the proper education, knowledge, and experience to be an SMSF auditor. You can find the list of approved SMSF auditor here (www.asic.gov.au).