There are many steps to be taken to make sure SMSF audits get finalised in a timely and fuss-free manner. 

Unnecessary delays in the process can be quite costly. 

A reliable SMSF auditor will provide a checklist of the many documents they require before they begin the auditing process. 

You should rely on the best SMSF audit firm in Melbourne for a smooth and successful audit process. 

Here are 10 important tips for a smooth SMSF audit process in Melbourne.

• Previous year’s reports
• ATO trustee declarations
• Expired lease agreements
• Bank statements
• Property insurance
• Property valuations
• Related party property information
• Derivatives risk statement
• Work test declaration
• Trustee representation letter

Previous Year’s Reports

You should always provide the new SMSF auditor with audit reports of the previous year. This may not be the easiest of tasks.

You need to preserve every SMSF audit report from previous years because the auditor will want to take a look at it before preparing the current report.

ATO Trustee Declarations

Make sure the trustees have signed the trust deed within 21 days of establishing the fund. 

This is an important thing to consider if you want the SMSF auditing process to be as smooth as possible. 

Expired Lease Agreements

There are two methods of dealing with expired lease agreements. One is to provide a letter to the lessee stating that the lease agreement will be renewed. 

This is if the lessee has the option of renewing the lease agreement. If there isn’t an option to renew the agreement, a new lease agreement should be provided.

Bank Statements

Bank statements are necessary to confirm all term and cash deposits held by the fund. 

The statements should show the transactions during the specific year – especially transactions that relate to contributions and pensions.

Property Insurance

If the policy is insured under the trustee’s name, it should include the fund as an interested party. 

This is another important step in the process of making the SMSF audit as smooth as possible.  

Property Valuations

A 3rd party appraisal of the property valuation should be done every three years. 

Supporting documents for each year’s market value should be included in the report.

Related Party Property Information

Whether a property is held directly by the fund or a related party, the verification process is the same. 

You should provide related party property information to the SMSF auditor to make the process as smooth as possible. 

Derivatives Risk Statement

If any of the trustees are involved in the derivatives market, you should supply a derivatives risk statement signed by the trustees to the SMSF auditing firm. 

This is a separate document that will help the auditor to analyse the risks of using derivatives as an investment strategy within the SMSF fund. 

It is an important step to make the process a success.

Work Test Declaration

If the member is over 65 years of age and still makes contributions, a work test declaration is a must. 

This requirement is supposed to completely disappear once the member retirement age increases. Until then, one should supply a work test declaration.

Trustee Representation Letter

All trustees should sign this document and date it correctly. This is an important factor to speed up the SMSF audit process and make it smooth.

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.

SMSF Pro has years of expertise in the Self Managed Super Fund arena and is able to conduct quick and independent SMSF audits for a flat fee.

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.