smsf audit related tips

Follow my blog with Bloglovin It is very important that your SMSF meets the residency test because the consequences of non-compliant status can be harsh. If in case, your SMSF fails the residency test requirements, you as an SMSF owner will have to pay the tax at the rate of 45% on the entire amount of SMSF asset less non-concessional contributions in the non-compliant year (the tax rate was increased to 47% during temporary budget repair levy financial years of 2014-2015, 2015-2016 and 2016-2017). The non-compliant status of the fund strips it essentially from all the tax concessions it had for years. Read more about this topic visit website

The work of SMSF auditors does not end with just SMSF audits. Their work also gets reviewed by none other than the ATO. That’s why SMSF auditors are expected to be always vigilant. If you are wondering what the ATO looks for in SMSF audits, we have got the answers.   Points that ATO looks for in an SMSF audit 1.                Threats to the SMSF auditor’s independence To make sure that there is no such threat, the ATO usually ensures that: ●        SMSF auditors have not audited their own or immediate family’s fund. ●        Auditor or the audit firm’s employees have not prepared the SMSF accounts. ●        Auditor wasn’t involved in a reciprocal arrangement i.e. if two independent auditors were not auditing each other’s SMSF. 2.                Completion of audit documentation In this regard, the ATO focuses on the following areas: ●        If the written audit plan and strategy are there on the file along with the audit checklist. ●        If the signed engageme

  Self-managed super   funds are a great choice when it comes to investments and financial independence. However, r unning an SMSF is not a child’s play. There is a lot to take care and   SMSF audit is  one of those  mandatory requirement s   that should be  met.    SMSF auditing   should be done by   SMSF  auditor s  registered  with the Australian  S ecurities and Investment  C ommission  ( ASIC ) . App roved  SMSF auditor s   are required to  carry out the financial as well as compliance audit for the  superfunds.   Not sure what superannuation   audit is all about? Read on!   What is  an  SMSF audit?   The SMSF  laws require an  SMSF  to  be audited annually .  Australian SMSF audits can be categorized into two parts:   Financial audits:   While performing financial audits, super fund auditors check whether the financial statements of the SMSF are accurate or not.    Compliance audits:   The purpose of the compliance audit by the SMSF auditor is to make sure that the SMSF is comp