SPAA South Coast December 2013

1. Thinking like an auditor
to greatly improve your SMSF advice
Jo Heighway
CEO
ENGAGE Super Audits
www.superfundauditors.com.au

2. THE AUDITOR, THE ATO….& THE CLIENT
Clarifying relationships
An interesting poll…..
Who does your auditor work for?
“…an employee of the tax office”
?!!!

3. THE AUDITOR, THE ATO….& THE CLIENT
Clarifying 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

4. THE AUDITOR, THE ATO….& THE CLIENT
Clarifying relationships
o-operation
To build long-term relationships:
ommunicationC
C
C
C
onsistency
ALM

5. 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

6. 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

7. • 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

8. 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?

9. www.superfundauditors.com.
au
AUDITOR REPORTING & ACRs

10. AUDITOR REPORTING & ACRs
RE: 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 audit
The following issues were noted during the course of my audit which I would like to bring to
your attention:
1/ Loan to Members – breach SIS
Detail facts of the event
Action Required
Detail recommended course of action

11. Tip #1 Complete advice that
covers the life of the
investment
Tip #2 Consider every SIS
rule that may apply
Tip #3 Dot the i’s and
cross the t’s
Everyone grab an “audit hat”

12. Tip #4 Address the
practicalities
Step by Step
Tip #5 Think about
“what could go
wrong”
Everyone grab an “audit hat”

13. 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 investment
Tip #2 Consider every SIS rule that
may apply
Tip #3 Dot the i’s and cross the t’s
Everyone grab an “audit hat”

14. • Communicating from Day One
• Pre- Audit checklist
• Save time and aggravation!
• Minimise the assumptions your
auditor has to make
Get Proactive with your auditor

15. THE BIG PICTURE
Rectification & Education
 Calm Clients
 Rectified ACRs
 Long term relationships (respect)
 Educated clients (accountant AND trustee)
 Reduction in ACR lodgement percentages
 Pro-active breach prevention
 No ATO non-complying fund notices

16. Jo Heighway
ENGAGE Super Audits
Central Coast NSW
Gold Coast QLD
** New Loyalty Program **
2 free audit trial for attendees
Ben Gill 0400 627 010
www.superfundauditors.com.au

17. 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.