For many, ‘audit’ is one of those words that sends people running for the hills. But when it comes to your self-managed super fund (SMSF), an auditor may actually be your fund’s best friend.

This is not only because an auditor can determine whether your investments are panning out as you hoped, but they can also make sure that you’re staying compliant with the law before lodging your annual tax return – and given that the super rules are quite complex, this can be extremely helpful.

They can also help you determine the correct value of your assets and make sure you don’t pay more tax than you need to.

An auditor is also the one professional that you absolutely must appoint to run your fund. If you have the right skills, you can pretty much carry out all of the services a DIY super fund needs, such as accounting and paper work, but you can’t carry out your own audit.

So appoint someone you feel comfortable talking with and make sure they are either a registered company auditor or a member of an approved professional body such as CPA Australia Ltd, The National Institute of Accountants or The Institute of Chartered Accountants. You can search for an auditor in our Service Providers Directory.

You must appoint an auditor at least 30 days before your fund’s annual tax return is due and you can’t lodge your fund’s annual return without an audit.

You can read more about SMSF audits in the Switzer Super Report, Australia’s leading investment newsletter and website for DIY super fund trustees. Take a 21-day FREE trial to get full access to all the great content on this website.

 

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Anyone should, before acting, consider the appropriateness of the information in regards to their objectives, financial situation and needs and, if necessary, seek professional advice.