At the end of each financial year your SMSF will have to undergo an SMSF audit.
The SMSF audit involves a review of your fund to ensure it remains a ‘complying fund’ as per the ATO’s definition.
SMSF Audit Checklist
The person performing the SMSF audit will require a number of documents. The auditor will generally provide you with their own SMSF audit checklist, however the following will give you an indication of what is generally required:
- Financial statements
- Bank statements for all fund accounts
- Evidence of ownership of all fixed interest securities
- Broker’s statement showing all transactions, or
- Holding statements for all shares held during the year
- Buy & sell contracts for all shares held during the year
- Confirmation of all managed investments
- Annual statements for managed investments showing income
- Contracts for any property purchased or sold
- Evidence of ownership for any property
- Property valuations
- Building insurance certificates
- Lease agreements and rental income statements
- Documentation for any art or collectables
- Insurance for any art of collectables
- Details of any loans owed by the SMSF
- Loan statements
- Details regarding any related party loans
- Details of any related party investments
- Confirmation of any contributions or withdrawals
- Confirmation that the member is eligible for contributions
- Details of any benefits paid out by the SMSF to members
- Information regarding any other investments
Some SMSF auditors may require additional documentation, so you should check with them for their exact requirements.
Who can audit my SMSF?
Your SMSF can only be audited by an approved SMSF auditor. SMSF auditors are most commonly qualified accountants, however there are some additional requirements.
Members of the following organisations are qualified SMSF auditors:
- CPA Australia
- The Institute of Chartered Accountants Australia
- National Institute of Accountants
- Association of Taxation and Management Accountants
Fellows of the National Tax and Accountants Association Ltd are qualified to audit and SMSF.
SMSF Specialist Auditors, as appointed by the SMSF Professionals’ Association of Australia, are also qualified to complete this important SMSF function.
Having your SMSF audited isn’t exactly most the most enjoyable part of having your own SMSF, but it is an essential part of the process.