Just like any of the other ways you might be trying to get ahead financially, the government will always be breathing down your neck to make sure you’re doing it correctly. Self managed super funds are no different, and these are subject to strict audits, known in brief as an SMSF Audit.
So, what is a self managed super fund audit? Well for starters, you can rest assured that it is as much fun as it sounds. In other words, it is not remotely fun at all. In fact, it’s a pretty good reason to not even bother with the notion of a self managed super fund. Just let one of the biggies handle it for you.
But if you’re insistent on having a self managed super fund, then you also need to have it audited annually by an approved self managed super fund auditor. It is the individual’s responsibility to ensure that the auditor he or she uses is approved by the Australian Securities and Investments Commission, or ASIC.
Further to the self managed super fund auditor being officially approved, he or she must also be completely independent, i.e. must not have any involvement or financial interest in the self managed super fund specifically.
When completing the self managed super fund audit, a self managed super fund auditor will make sure that all aspects of the self managed super fund are compliant with the relevant standards and regulations. You must provide all relevant documentation to the auditor, and then your compliance with all the superannuation rules will be assessed.
Once completed, and assuming everything is compliant, the self managed super fund auditor is required to provide you with an audit report before the due date of your self managed super fund annual return, and bring any concerns from the Self Managed Super Fund audit to the Australian Taxation Office.