SMSF Auditor
A Self-Managed Superannuation Fund (SMSF) is a special type of retirement fund where members also serve as the trustees, thereby allowing them greater control over investment decisions, insurance policies, and other matters. A key responsibility involved in administering such a fund is the provision of annual audit reports. To fulfill this duty, the services of a registered SMSF auditor are required.
An SMSF auditor scrutinizes the fund’s financial documents to confirm their accuracy and authenticity. They also ensure that the fund’s operations comply with the superannuation regulations. The critical role they play helps maintain the integrity of the fund and its adherence to the appropriate legal standards.
Becoming an SMSF auditor
To become a registered SMSF auditor, there are certain criteria that one must fulfill. These include:
1. Residency: The applicant must be an Australian resident.
2. Competency Examinations: The applicant must pass competency examinations pertinent to the field.
3. Practical Experience: A certain level of practical experience in auditing self-managed superannuation funds is required.
4. Educational Qualifications: Specific educational qualifications are necessary for this role.
The registration regulations for becoming an SMSF auditor are comprehensively outlined in the ASIC Regulatory Guide 243. This guide contains detailed information about the application process, the requirements that need to be met, and the information you are required to provide.
The application for becoming a registered SMSF auditor necessitates several pieces of information from the applicant. These include background checks related to bankruptcy and criminal history spanning the past ten years across all countries where the applicant has resided during this period. It’s recommended to begin the process of obtaining this information early, to ensure it’s readily available when submitting the application.
The application can be submitted via the ASIC regulatory portal online. All necessary information and supporting documents should be attached to the application. Additionally, a fee is required upon submission of the application.
Upon receipt, ASIC will review the application. If the applicant fulfills all requirements and ASIC is satisfied with the information provided, the applicant will be granted the status of a registered SMSF auditor.
Obligations
As an SMSF auditor, there are various responsibilities you must fulfill:
1. Submit an annual statement: This step is paramount and confirms your continued registration, verifying your compliance with all obligations and conditions.
2. Maintain current details: It is your responsibility to ensure your personal and professional details on record are accurate and up-to-date.
3. Complete professional development: To maintain high standards of proficiency and knowledge, it is recommended that you undertake ongoing professional development.
4. Hold adequate professional indemnity insurance: You’re required to hold the recommended level of professional indemnity insurance.
You must also adhere to:
1. Registration conditions: These include all terms attached to your registration.
2. Auditing and assurance standards: These standards are issued by the Auditing and Assurance Standards Board (AUASB).
3. SMSF auditor competency standards: These standards define the skills, knowledge, and attitude required to perform SMSF audits.
4. Auditor independence requirements: These are outlined in the APES 110 Code of Ethics and should guide your practice.
The Australian Taxation Office (ATO) oversees the SMSF auditors, ensuring compliance with the rules and reporting any instances of non-compliance to ASIC. The ASIC may then take various actions depending on the severity and frequency of non-compliance. These could range from modifying the conditions on the auditor’s registration to complete suspension or disqualification.
The crucial task of lodging an annual statement is required within 30 days following the anniversary of your registration date. This must be completed online through the ASIC regulatory portal. If you’re unable to lodge by the due date for reasons beyond your control, it is possible to apply for an extension, but this must be done before the original due date. You can also authorize another person to help you with this process on the portal. All necessary supporting documents must be attached where necessary.
Here are some useful websites related to SMSF auditing:
Australian Securities and Investments Commission (ASIC) Regulatory Portal
This is where you can apply to become a registered SMSF auditor, as well as lodge your annual statement and update your details. The ASIC portal also provides detailed information on the requirements for registration and the obligations of SMSF auditors.
This guide provides information on the registration process, eligibility requirements, and the obligations of an SMSF auditor.
Australian Taxation Office (ATO) – SMSF auditors
The ATO provides a wealth of information for SMSF auditors, including responsibilities, the audit process, and guidance on various SMSF auditor issues.
Auditing and Assurance Standards Board (AUASB)
The AUASB develops, issues and maintains Australian Auditing and Assurance Standards. Their website contains a wealth of resources for auditors.
The APES 110 Code of Ethics outlines the ethical requirements for professional accountants and auditors. It provides a framework for ensuring independence and maintaining professional conduct.
These resources will provide comprehensive information on becoming an SMSF auditor, fulfilling your obligations as an auditor, and staying updated with the latest in auditing and assurance standards.