Who should Audit a SMSF

Again the SIS laws explain who should be an auditor: they are:

• A CPA, CA, or SPAA
• Auditor general of the commonwealth
• Fellow or member of the Association of Taxation And Management Accountants
• Fellow of the National Tax And Accountants Association Ltd
• A member of the National Institute Of Accountants
• or another recognised professional accounting body
• A registered Auditor under the Corporations Act

As of 13 January 2013, SMSF Auditors will be able to apply for registration with ASIC, all auditors must then be registered with ASIC by 1 July 2013 to continue auditing SMSF’s after this time. The ATO has created a new field for auditor ASIC registered numbers, this has been created to allow for these new reforms and registration numbers that can be issued as early as 13 January 2013, depending on the registrations process time frames by ASIC. To read more see page 2 the <CPA fact sheet>. If you want to read the exposure draft to the legislation and draft regulations see <stronger.super.treasury>.

The draft reg’s will amend the SIS Regulations to specify the qualifications, practical experience preceding application (300hrs/3yrs), CPD (120hrs/3yrs incl.30hrs/super incl 8hrs SMSF auditing), PI and auditor independence (APES110). The PI under a limitation liability scheme by a professional organisation will be ok, otherwise ASIC requires $500k.  Other changes include:

•  audit report due 28 days after the trustee provided all documents to the auditor.
• Applying for registration as an approved SMSF auditor  $100
• Undertaking a competency examination s128C of the SIS Act   $100..and more
• you now need to appoint an approved auditor no later than 45
  days before the due date for lodgment of your SMSF annual return (previously
  the time was no later than 30 days before the auditor had to give their audit
  report to the trustees)From 1 July 2013, all SMSF auditors are required to be
  registered with the ASIC)and quote their SAN on the SMSF independent auditor’s report (revised for
  2013) and entered on the SMSF annual return for 2013 and quoted by auditors when lodging contravention
  reports.

SMSF Audit Compliance Update – <ATO-Link><FOFA>.

Make Sure you check the approved Auditor Disqualification Register, see <ATO-Link>.