Children back at school, work from home orders rescinded, clients feeling positive about the future.

A collective sigh as the long hoped for return to normality might be returning.

And after the hectic turbulence of the past few years, there is a backlog of work to clear.

At last count there are an estimated 80,000 SMSF audits overdue.

Here’s a helpful checklist to speed up the audit process. All of which are coming under increasing cross-checks by the regulatory authorities.

Audit fast-track Checklist

1. Lease arrangements

If the SMSF has a rental property, provide copies of lease arrangements. This is particularly important where the parties are related. Please make sure the rent is at market valuations and verified.

2. Asset Valuations

Address and comment on asset valuations. Provide a verifiable process as to how they were established. Given the dramatic increase in property prices this will be critical.

3. Investment Strategy

Confirm the SMSF investment strategy. And if not diversified, that this has been considered and rejected.

The ATO is monitoring this, and it is becoming an issue. Aggrieved third parties have already started to lawyer up. Which is always time consuming and potentially very expensive.

4. New Pensions

Provide signed copies of the pension minutes for new pensions.

5. Bank Statements

Provide bank statements, at least for year-end. You’d be surprised how often bank feeds can be wrong. Print outs from online bank accounts are fine.

6. Administrative issues to rectify

• Bank accounts not unique to the SMSF.
• Providing an incorrect electronic service address (ESA).
• Trying to lodge with zero assets.
• Lodging a SAR without auditors’ details.

Need help?

As always if you have any questions or areas you are uncertain about, please call. We are here to help you.