SMSF audits can be a daunting experience, but if you have the right documents at the ready, it should make the process much smoother. In this post, we’ll outline the documents you should have prepared in order to make sure your SMSF audit goes as smoothly as possible.

Understand Your SMSF’s Audit Requirements

Before diving into what documents are needed for an SMSF audit, it’s important to understand exactly what the auditor will be looking for. It is required that every SMSF lodges a report annually with the Australian Taxation Office (ATO), including audited financial statements, latest maintenance records and all essential transaction details. The auditor must also verify each member of the fund has been compliant in terms of the superannuation laws in Australia. Therefore, make sure you have obtained reliable accounting advice and can provide accurate and up-to-date information regarding your SMSF’s assets and liabilities.

When it comes to an SMSF audit, there are a number of documents that must be provided to the auditor. These include:

Financial Statements: The auditor will need to review the SMSF’s financial statements, including the balance sheet, income statement, and statement of cash flows. These documents provide a snapshot of the fund’s financial position and performance, and are used to ensure that the SMSF is in compliance with the Superannuation Industry (Supervision) Act 1993.

Trust Deed: The trust deed is a legal document that outlines the rules and regulations of the SMSF. The auditor will need to review the trust deed to ensure that the SMSF is in compliance with the terms outlined in the document.

Investment Strategy: The SMSF’s investment strategy should outline how the SMSF’s assets will be invested, including any limits on the percentage of assets that can be invested in any one asset class. The auditor will need to review the investment strategy to ensure that the SMSF’s investments are in line with the strategy.

Taxation Records: The auditor will need to review the SMSF’s taxation records, including the SMSF’s tax return, to ensure that the fund is in compliance with all relevant tax laws and regulations.

Banking and Investment Records: The auditor will need to review the SMSF’s banking and investment records, including statements and transaction records, to ensure that the fund’s investments are in line with the investment strategy and that the SMSF is in compliance with the Superannuation Industry (Supervision) Act 1993.

Valuation of the assets: The auditor will need to review the SMSF’s assets and the valuation of the assets held by the fund, this includes cryptocurrency holdings. This will ensure that the assets are valued correctly and that the fund’s investments are in line with the investment strategy.

Compliance with the laws and regulation: The auditor will review all the documents provided to ensure that the SMSF is in compliance with all relevant laws and regulations, including the Superannuation Industry (Supervision) Act 1993, and that the fund’s investments are in line with the investment strategy.

It is important to note that while these documents are typically required for an SMSF audit, the specific requirements may vary depending on the auditor and the SMSF’s specific circumstances. SMSF trustees should consult with their auditor to determine exactly what documents will be required for their audit.

It’s also important to note that the list of documents provided is not exhaustive, and additional documents may be required depending on the specific circumstances of the SMSF. It’s always best to consult with your auditor to confirm which documents are required for the audit.

In conclusion, SMSF trustees have a responsibility to provide the necessary documents for an SMSF audit. The documents required for an SMSF audit include financial statements, trust deed, investment strategy, tax records, banking and investment records, valuation of assets, and compliance with laws and regulations. SMSF trustees should consult with their auditor to determine exactly what documents will be required for their audit.

Disclaimer: SMSF Audit Australia Pty Ltd is not licensed to provide advice on investments, or legalities of the types of investments that you can have. We recommend that you seek professional advice from an AFSL holder before making any investment choice or decision including establishment of a SMSF. The articles on this website is for educational purposes only.