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Thinking like an auditor
to greatly improve your SMSF advice
Jo Heighway
CEO
ENGAGE Super Audits
www.superfundauditors.com.au
THE AUDITOR, THE ATO….& THE CLIENTClarifying relationships
An interesting poll…..Who does your auditor work for?
“…an employee of the tax office”?!!!
THE AUDITOR, THE ATO….& THE CLIENTClarifying relationships
We engage with the SMSF trustees to provide our opinion on the financial statements and compliance with the SIS Act and Regulations
We need to be as independent of the tax office as we are of the Trustees and the referring partner- Law vs ATO opinion/guidance
Contract or engagement agreement with each referring partner
We have reporting obligations with the ATO
THE AUDITOR, THE ATO….& THE CLIENTClarifying relationships
o-operation
To build long-term relationships:
ommunicationC
C
C
C
onsistency
ALM
Get proactive with your auditor - Prevention is always better than
the cure
Choose your auditor wisely
Every SMSF professional should own their very own
“audit hat”
To get the best audit results possible….
Know what your auditor DOES
HOT TIP:Interview your auditor like you would
a potential new and important member of your team
Why you MUST get it right:
• Quality control - Your safety net
• Your reputation & brand
• Expand your knowledge pool
• Turnaround
• Client Relationships
Choose your auditor wisely
• Specialist SMSF Auditor (ASIC registered)
• Understands who they work for
• Technology/Systems focused
• INDEPENDENT
• A commercial business decision, not a legislative decision!
Choose your auditor wisely
What DOES your auditor DO?!
Management Letter to the Trustees
S.129 Notice to the Trustees
Audit Report (ATO approved form)
Auditor Contravention Report (ACR)
Management Letter to the referring partner?
AUDITOR REPORTING & ACRsRE: AUDIT MANAGEMENT LETTER / S129 NOTICE
I wish to advise that the audit of the «Fund_Name» for the year ended 30 June 2013 has recently been completed.Auditors are encouraged by the Australian Taxation Office to issue a management letter at the completion of each audit, as a means of advising the Trustee of any matters noted during the course of the audit.In addition, in accordance with SIS s.129, I am obligated to advise you in writing of any contravention(s) detected. I wish to advise during the course of our audit I noted a reportable contravention(s) of the SIS Act and Regulations (detailed below). A copy of the Auditor Contravention Report (ACR) is attached for your information. Matters noted during the course of my auditThe following issues were noted during the course of my audit which I would like to bring to your attention:
1/ Loan to Members – breach SISDetail facts of the eventAction RequiredDetail recommended course of action
Tip #1 Complete advice that covers the life of
the investmentTip #2 Consider every
SIS rule that may applyTip #3 Dot the i’s and cross the t’s
Everyone grab an “audit hat”
Tip #4 Address the practicalities Step by Step
Tip #5 Think about “what
could go wrong”
Everyone grab an “audit hat”
Tip #4 Address the practicalities Step by Step
Tip #5 Think about “what could go wrong”
Tip #1 Complete advice that covers the life of the
investmentTip #2 Consider every SIS rule
that may apply
Tip #3 Dot the i’s and cross the t’s
Everyone grab an “audit hat”
• Communicating from Day One
• Pre- Audit checklist
• Save time and aggravation!
• Minimise the assumptions your auditor has to make
Get Proactive with your auditor
THE BIG PICTURERectification & Education
Calm ClientsRectified ACRsLong term relationships (respect)Educated clients (accountant AND trustee)Reduction in ACR lodgement percentagesPro-active breach preventionNo ATO non-complying fund notices
Jo Heighway
ENGAGE Super AuditsCentral Coast NSW
Gold Coast QLD
** New Loyalty Program **
2 free audit trial for attendees
Ben Gill 0400 627 010
www.superfundauditors.com.au
DISCLAIMER
© Jo Heighway, ENGAGE Super Audits 2013
This presentation is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The presentation has been prepared without taking into account any personal objectives, financial situation or needs. It does not contain and is not to be taken as containing any securities advice or securities recommendation.
Furthermore, it is not intended that it be relied on by recipients for the purpose of making investment decisions and is not a replacement of the requirement for individual research or professional tax advice. This presentation was accompanied by an oral presentation, and is not a complete record of the discussion held. No part of this presentation should be used elsewhere without prior consent from the author.