Each financial year, your SMSF must undergo a financial and compliance audit to ensure it continues to meet Australian Taxation Authority (ATO) requirements. An audit must be completed before you can file an annual tax return with SMSF.
SMSF audit consists of two parts: a financial audit and a compliance audit. The financial audit component audits the fund's financial statements by Australian Auditing Standards (ASA). You can also look for Best Tax Accountants in Werribee at https://www.motionaccountancy.com.au/tax-accountant-werribee/.
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The compliance audit component primarily verifies that your SMSF funds comply with all pension laws according to the Guarantee Commitment Standards (ASAE) prepared by the Audit and Assurance Standards Board (AUASB).
SMSF audits must be carried out by a registered and accredited SMSF auditor appointed by the manager. Auditors must also be audited by ATO (multiple audits). You cannot audit your SMSF funds or those of a close family member.
Documents required for an SMSF audit:
Auditors need source documents to verify fund transactions for the financial year. This can include bank statements, contract records, lease statements, and more.
Some accounting programs can accept electronic data from banks, brokers, and managed fund platforms, eliminating the need to provide physical reports and documents.
Fund assets must be held on behalf of the Superfund to ensure asset allocation between the personal assets of the Trustee and the Superfund.