What Are SMSF Auditor’s Reports?

If you, like most Australians, are relying on a self managed superannuation fund to save for your retirement, you need the assistance of an SMSF auditor to meet your tax obligations. Their primary function is preparing an annual report on your fund’s status. SMSF auditors are also required to any potential contraventions to the Australian Taxation Office. Auditor’s reports give you a firm grasp of your financial standing. If you’d like to learn what are SMSF auditor’s reports good for in detail, simply read on.

The Role Of SMSF Auditors

Self managed superannuation funds enjoy significant tax benefits that allow you to protect your retirement savings. However, your fund only qualifies for low tax rates if it is fully compliant with the Superannuation Industry Supervision Act (SISA) and its applicable regulations (SISR). An SMSF auditor is a financial professional with the expertise and credentials to verify that your fund is compliant with the taxation laws. Non-compliant funds are subjected to a tax rate of forty-seven percent, which is why keeping your fund healthy and conforming to the taxation laws is crucial! A proper SMSF auditor holds a registration from the Australian Securities Investment Commission (ASIC) verifying his or her competence.

What Are SMSF Auditor’s Reports

For all its importance, an SMSF auditor’s report is a surprisingly straightforward document. It is basically a summary of all the changes in your fund’s assets over the last reporting year. An affidavit from the SMSF auditor is attached which certifies that the fund has been operated according to SISA regulations in all respects. Supporting financial records and detailed accounting documents are typically attached, and the auditor will annotate them with notes drawing attention to any important details. It’s important to note that while your auditor takes responsibility for verifying your fund’s regulatory compliance, you (and any other trustees of the fund) are still responsible for the truth and completeness of the records in the report. A major part of the auditor’s job is verifying the information you provide for the audit.

Regulations On SMSF Reporting

The principal yardsticks used by self managed superannuation fund auditors are the regulations of the Auditing and Assurance Standards Board, (AUASB) especially their regulations and recommended practices for SMSFs. Auditors are also required to conform to the competency standards for auditors laid out by ASIC. These guidelines all help auditors form a complete picture of your fund’s financial standing. After they’ve developed this, they’re responsible for delivering their professional opinion to you on the fund’s status and compliance. If your fund has fallen outside the approved boundaries of SISA and SISR regulations, your auditor has a responsibility to report it to the ATO.

Obviously, the job of an SMSF auditor calls for a great deal of financial expertise. Their responsibilities are fairly simple, even though they deal with very complex regulations. Their reports tell you whether or not your self managed superannuation fund is healthy and compliant, and that’s information that should be very important to you.