SMSF Auditors: Compare Independence, Evidence Requests and Audit Reports

Compare the published audit services

Australian trustees should compare the fee and client route, verify the proposed signer on ASIC’s register, and agree on scope, evidence, reporting and contract terms in writing.[1][3][4] Every SMSF must be audited annually by a registered SMSF auditor.[1]

Just SMSF Audits

• Fee comparison: The provider describes a flat-fee audit offer.[3] Obtain a dated quote including GST, fund complexity, missing records and any extra work; do not treat a published amount as a binding engagement price.
• Client eligibility: The offer is available to tax agents, with no minimum number of funds.[3]
• Australian delivery: The provider says reports are signed in Australia by ASIC-registered auditors.[3]

Simply SMSF Audits

• Fee comparison: The provider describes an online audit service and pricing terms.[4] Obtain a dated quote for this fund, including GST, exclusions and any additional work before comparing it with another service.
• Client eligibility: The service is directed to SMSF accountants and administrators, including accountants affiliated with IPA, CPA or CAANZ and tax agents registered with the TPB.[4]
• Australian delivery: The provider says it operates Australia-wide, is Australian-based and does not outsource its audits.[4]

Both services are primarily described as engagements submitted through tax agents, accountants or administrators.[3][4] Confirm direct-trustee eligibility, the named signer and the start trigger for any turnaround promise. Document completeness, audit queries and the actual agreed service level determine whether a quoted timetable applies.

Treat Just and Simply as candidates to enquire about through the fund’s accountant or tax agent, subject to confirmed eligibility.[3][4] Compare binding fees, signer independence, evidence requirements and query handling. Their published pages do not independently establish which service is cheaper, faster or more reliable for this fund.

Separate audit services from audit software

An audit-themed product is not necessarily an independent audit engagement. Online SMSF Audit is web-based software for auditors, with document uploads, workflow management, document storage and automatic generation of working papers and reports.[2]

Its workflow assumes an auditor registers, an accountant or trustee uploads documents, and the auditor performs the work.[2] The cited page does not establish that buying the software supplies an independent registered auditor to conduct and sign the fund’s statutory audit.[2]

Before proceeding with any product, obtain the proposed signer’s name, ASIC registration details, engagement letter and audit fee. Software access alone does not identify who is accepting the audit engagement.

Verify registration, accreditation and independence

Ask for the full name and registration details of the individual expected to sign the report, then check that person through ASIC’s Professional Registers Search.[1] Checking the firm’s name alone is not enough to identify the proposed signer.

The SMSF Association describes SSAud® as specialist accreditation. It says the program can contribute to the education requirements for ASIC auditor registration, but the designation is separate from registration and should not replace an ASIC register check.[1][5]

Request a written, fund-specific independence assessment addressing the signer, audit firm, accountant, administrator, trustees and related providers. AUASB’s June 2020 GS 009 explains independence and self-review threats where the same firm prepares accounting information and audits it. Such work is not automatically permissible: applicable conditions and threats must be addressed.[7] Ask the proposed auditor to confirm the current rules and safeguards.

Agree on evidence and audit scope

Ask the selected auditor to turn the fund’s asset schedule into a written evidence request. Relevant work includes checking whether reported assets belong to the fund, exist and are appropriately valued.[6]

• Bank accounts, investments and property: Records or title documents may be needed to show the correct trustee name.[6]
• Cash, listed shares and managed funds: These generally have more readily available valuation evidence.[6]
• Property and unlisted investments: These may prompt further valuation questions.[6]
• Cryptocurrency, artwork and gold: The auditor may request extra evidence of ownership, existence or value.[6]

An auditor may rely on a signed trustee representation letter for matters that cannot readily be checked. Heffron gives the example of a trustee confirming they have not been convicted of an offence that would make them ineligible to act.[6] The engagement should identify what each representation is intended to cover.

The audit may test a sample rather than every transaction.[6] The financial audit also does not ordinarily verify every tax calculation or deduction, although the auditor may investigate if the fund’s tax appears materially wrong.[6]

Use the source material to understand likely evidence requests; have the appointed auditor specify current requirements for the fund’s actual assets and circumstances.

How evidence gaps affect the report

The audit report separates the financial audit in Part A from the compliance engagement in Part B.[7] Missing or weak ownership and valuation records may prevent the auditor from confirming that an asset exists, belongs to the fund or is appropriately valued.[6]

Insufficient evidence or material financial misstatement may affect Part A; a compliance breach can affect Part B.[6] Reliance on a platform, service organisation or another professional’s work does not by itself require a qualification. The auditor must assess the evidence available and explain any limitation and resulting report modification.

Changing auditor does not automatically produce a qualified report. The incoming auditor needs sufficient appropriate evidence for opening balances. If that evidence cannot be obtained after appropriate procedures, GS 009 explains that the financial report is modified.[7] Arrange previous reports, records and authorised liaison early; ask what additional evidence is needed.

If an asset’s value is questioned, ask for the reason in writing, assess whether the investment remains appropriate and recoverable, and arrange stronger evidence for the next audit.[6]

Understand each audit outcome

• Clean report: The auditor found no material issue of concern. It does not mean every transaction or aspect of the fund was examined.[6]
• Part A qualification: This concerns the financial audit and may reflect a material misstatement or an unresolved evidence limitation.[6] The auditor should identify the actual reason; a provider change or platform holding alone is not that reason.
• Part B qualification: This identifies a breach of a superannuation rule.[6]
• Auditor Contravention Report: GS 009 distinguishes trustee communications, the compliance report and reporting to the ATO, which use different criteria.[7] Ask the auditor to apply the current ATO ACR instructions and explain any required report and deadline; do not assume a Part B qualification and an ACR are interchangeable.
• Management letter: Written trustee communications identify matters and follow-up. They do not replace a required ACR or modified audit report; ask the auditor which obligations apply and who must address each item.[7]

ASIC describes the annual approved-auditor requirement.[1] Agree on the evidence-delivery timetable and completion of the independent auditor’s report before the fund’s annual return is lodged.[6][7]

What to confirm with each provider

The cited pages for Just and Simply do not clearly state whether individual trustees can engage directly, and leave material terms unstated, including cancellation and refunds, engagement duration, complete evidence requirements, detailed exclusions, data retention, security standards, liability and independent performance validation.[3][4]

Before appointment, request written terms covering:

• the named report signer, ASIC registration details and independence confirmation;
• whether the provider accepts direct trustee engagements or requires submission through a tax agent, accountant or administrator;
• the total fee, possible extra charges and treatment of late or incomplete records;
• the evidence checklist, audit scope, exclusions and any trustee representations;
• the start trigger, turnaround conditions and query-response expectations;
• privacy and security controls, data retention and breach-notification procedures;
• ownership of uploaded documents and access to records after the engagement;
• cancellation, refunds, liability limits, termination and transition assistance;
• professional-indemnity insurance, if this is part of the selection criteria; and
• the applicable appointment, record-delivery and ACR reporting deadlines and thresholds.

Make the appointment defensible

1. Confirm the offer is an independent audit engagement rather than software or workflow support.
2. Check the named signer in ASIC’s Professional Registers Search.[1]
3. Obtain fund-specific independence confirmation.
4. Agree on the evidence list, fee, scope, timing and reporting process.
5. Do not appoint the provider until the engagement and exit terms are in writing.

References

1. Self-managed superannuation fund (SMSF) auditors | ASIC (asic.gov.au)
2. Online SMSF Audit |Self managed super fund audit software (onlinesmsfaudit.com.au)
3. Just SMSF Audits (justsmsfaudits.com.au)
4. Simply SMSF Audits: Online Super Fund Auditing Services (simplysmsfaudits.com.au)
5. SMSF Specialist Auditor Program – SMSF Association (smsfassociation.com)
6. SMSF Audit: What do auditors check and what does it all mean? | Heffron (heffron.com.au)
7. AUASB GS 009: Auditing Self-Managed Superannuation Funds, June 2020, independence and opening balances (auasb.gov.au)