Self managed super funds are the best way to save for retirement. There are many different super funds in Australia, but SMSFs are most popular ones as they allow member to have a full control over fund assets. Setting up an SMSF is easy, all you need to do is meet all the requirements and know how to complete the process. But before you set up your SMSF, you should know that you are responsible for every single fund-related decision, regardless of the number of trustees your fund has. Another responsibility of SMSF owners is to make sure their super fund is audited by an approved auditor on a yearly basis.
Self managed super fund audit is required at the end of every year and should be done by an approved auditor, a professional who has a valid license, invests in his/her professional development and properly supervises those who work under his/her behalf by making sure they have enough knowledge and experience. The approved auditor will conduct a financial and compliance self managed super fund audit. The financial audit allows auditors to examine the fund’s financial statements, while compliance audit assesses your fund’s compliance with ATO superannuation rules.
One of the most commonly asked questions is can you yourself conduct an audit of your fund. Neither you nor any member of your SMSF can audit your own fund, as it is a breach of ethical requirements relating to independence. The super fund audit can be only performed by qualified and approved auditors. To prevent potential fines by the Australian Taxation Office, you need to be aware of all the legal and taxation obligations as a trustee of the fund. You are responsible for scheduling and filing your super fund audit every year.
Besides super fund audit, handling an SMSF is a complex process. Therefore, an increasing number of Australians are hiring professionals to help them with the management of their SMSF. Preparing all documents required for the audit process is not easy, especially since your SMSF must always be in compliance with rules and regulations.
SMSF auditors are able to perform an accurate audit and discover all possible problems that might occur. To eliminate all possible issues, look for a reputable super fund audit company. A reliable audit company will make sure your SMSF is protected from different bad investment decisions. However, as a trustee of your SMSF, you have the responsibility to undertake audits and keep the records. Once the auditing procedure is completed, you need to submit the records to the ATO. If you are not good with handling administrative work, you can hire a professional to help you with these tasks as well.