Every year we get asked by advisers why our auditors ask for so much documentation relating to investment decisions or certain transactions within SMSF’s.
As we prepare to enter a new financial year, we thought that it would be timely to understand some of the main issues our auditors look for when reviewing SMSF financials.
Audit standards have increased significantly in recent years since the ATO started taking a hard line with auditors. Several prosecutions and law suits have highlighted the inability of those charging significantly below market rates to adequately perform this important role and several hundred have now left the industry. Those left are now taking a much firmer line on ensuring that trustees understand their obligations, especially when it comes to things like investment strategy, diversification and liquidity.
In this podcast Shelley Banton, who is the Head of Education at ASF Audits, one of Australia’s largest independent SMSF Auditors joins Fraser Jack to discuss what happens during an audit, and what the pain points are.
We hope you enjoy.