July 1st Changes to Auditing Standards for SMSF’s
On July 1st 2021 the ATO will enforce compliance to the new requirements set out in the APES 110 Code of Ethics for Professional Accountants, this restructured code identifies risks from auditors performing in-house audits.
The changes identified that SMSF auditors cannot audit where their staff or firm has prepared the financial statements for the SMSF unless it is a mechanical or routine service. From 1st July 2021 the ATO will take action where auditors are found not to be complying with the code, the result of which could mean auditors referred to ASIC for further action.
Although Accounting and Audit firms have had 18 months to prepare for these changes many companies realise that they are not now equipped to undertake the audit of their SMSF client financial statements and that now could be the right time to outsource the audit.
SMSF trustees all have very different risk appetites from the conservative cash and property to the more higher risk assets such as unlisted companies and speculative investments like cryptocurrencies. This variation makes it essential for the auditor to look at the investment strategy and if a true understanding of the compliance framework has been applied.
A smooth audit comprises of great communication and collaboration knowing that if there are any questions or queries throughout the year you can reach out to the auditor.
For more information on SMSF Audits please contact our SMSF specialists Elliott da Silva and George Georgiou who have over 20 year’s experience in SMSF Audit’s.
Connect National Audit Pty Ltd ASIC Authorised Audit Company : 521888 Suite 2, Level 13, 350 Collins Street, Melbourne VIC 3000 +61 3 9592 2357 www.connectaudit.com.au