Annual SMSF audits are compulsory in Australia and must be done by a qualified auditor who is registered with the relevant authorities.
These experts are highly specialised and are tasked with analysing a fund’s financial statements and checking whether they comply with the superannuation law.
Any issues discovered during this audit will be reported to the trustees for further action.
If you are in Australia and run an SMSF fund, the chances are high you are in the market for a reliable SMSF auditor.
You will find plenty of them around, so here are some important tips for picking the right one.
SMSF audits contain some very sensitive information, and you need to find someone who is experienced and capable of handling this information.
You want them to conduct the review in the right manner, and this can only be done by auditors who have been at it for a relatively long time.
While the less experienced SMSF auditors might still be right for the job, they bring an element of risk which is not desirable in such sensitive matters.
Always look at the number of years an auditor has been practising before hiring them.
A more experienced auditor will have a better understanding of the issues associated with the fund and how to avoid any potential problems based on their experiences.
All SMSF auditors will try to advertise their services on the internet and lure in potential customers by claiming how good they are.
This is pure marketing, and it helps to look beyond the marketing bravado to find out whether the auditors are right for you or not.
A good way of doing this is by checking what previous SMSF’s have to say about them.
If they have audited previous funds, try to get in contact with the people running those funds so you can get an insight into the kind of services they offer.
Ask about how they work or conduct their audits so you can get some reassurance before taking the plunge.
SMSF auditors need to hold certain credentials before they are allowed to practice and it is essential to look into this before hiring one.
The first thing that you need to check is whether they are registered with ASIC.
Keep in mind that ASIC only registers individuals and not firms, and no one should deceive you regarding this.
If they are working for a firm, check whether the site indicates a list of approved auditors and if they can prove this.
When auditors engage in malpractices, they are punished or blacklisted, and it helps to check whether the auditor has been banned or disqualified by ASIC.
Do not be tempted to work with auditors who have red flag next to their names.
In a nutshell, ensure that you conduct in-depth research regarding the SMSF auditor you choose.
This will give you the assurance that you are dealing with the right experts.
Some of the crucial things to look out for when looking for a trustworthy and reliable SMSF auditor have been listed above.
Above all, you need to make sure that your auditor is proactive when dealing with your fund.
They should be fully committed to the task at hand and save you from penalties by advising you on any potential issues that could arise.
A disorganised SMSF auditor will cost you a lot of money in fines so you need to try to avoid this sort of a situation.
Make sure that the auditor you choose does not outsource the services from another firm as this will create a long chain of people involved in the audit, making it hard to channel your concerns.
If you are looking to establish a Self Managed Super Fund, or need to have your Self Managed Super Fund audited, then look no further than SMSF Pro.
Please call us today on 1300 023 374 or message us through our website https://smsf-auditor.com.au/contact/ for all your Self Managed Super Fund requirements.