HQB’s Weekly SMSF News – Week 9
What does the SMSF auditor do?
- The SMSF auditor is appointed by the trustees of the super fund (which is the same people as the members).
- The SMSF auditor is required to provide an opinion on two matters:
- Do the financial statements of the SMSF ‘present fairly’ the financial affairs of the SMSF?
- Did the SMSF comply with a list of specific sections of the superannuation law during the financial year?
- If the auditor notices a significant breach of the above laws, they are required to notify the ATO via a ‘Auditor Contravention Report’ (ACR).
- Although rare, the ATO has the power to consider the matters raised in the ACR and issue a range of penalties, including taxing the SMSF at 47% or fining the trustees.
– James Davis
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.