All SMSFs are subject to annual audit requirements. Audits are an essential tool in maintaining the health and integrity of the SMSF system.
The role of an auditor is to:
-conduct a financial and compliance audit of a SMSFs operation for the income year
-give the trustees an audit report in the correct form within the specified time period
-advise the ATO of any reportable contraventions
It is the responsibility of the SMSF auditor to ensure their independence from the fund and to not accept work in which they have a personal or business relationship with the fun, or trustees.
There is a big cost variance in audit providers. It is important to be wary of low-cost auditors as their private financial information may be heading offshore. If trustees want their audit done in Australia, they should ensure that their audit provider does not outsource.
All auditors had to register with the ASIC by 1 July 2013 to continue auditing SMSFs. As well as registering auditors need to satisfy their professional body requirements such as doing professional development courses and having insurance. Not all accountants are able to perform SMSF audits.