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  • Completing this report

    Complete the Self-managed super fund independent auditor’s report (IAR) (NAT 11466-07.2019) as follows.

    Approved SMSF auditor details

    Provide your details as the approved SMSF auditor, including your:

    • name
    • business name
    • business postal address
    • SMSF auditor number (SAN), issued by ASIC.

    SMSF details

    Provide details of the SMSF you are auditing, including the:

    • name as it appears on the trust deed
    • Australian business number (ABN) or tax file number (TFN)
    • address
    • year of income you are auditing.

    If you are auditing more than one year, you must use a separate report for each year.

    Part A: Financial audit

    Provide the title of the financial report you have audited. Include a summary of significant accounting policies and any other explanatory notes.

    Provide the year of income you are auditing.

    You can add any additional material or notes on the lines provided.

    Provide your unqualified, qualified or adverse opinion on whether the financial report presents fairly in all material respects in accordance with the accounting policies described in the notes to the financial report. You can do this by choosing the appropriate wording in the report that is to be used for each type of opinion and provide the year of income the opinion relates to.

    If you are unable to provide an opinion on the financial report you should choose the wording appropriate for a disclaimer of opinion in the footnotes to the report.

    If you provide a qualified, adverse or disclaimer of opinion, provide details of the basis for that opinion in the report. New auditing standards commenced operation for reporting periods beginning on and from 1 January 2010. Where your audit is for such a period, include the basis of accounting section indicated in Part A of the audit report; otherwise, delete this paragraph.

    Part A of the audit report contains the statement that the audit has been conducted in accordance with Australian Auditing Standards. This refers to the auditing standards issued by the AUASB. You also need to ensure you have complied with the independence and ethical requirements set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (2018) when undertaking the audit.

    Part B: Compliance engagement

    No sections can be removed from the approved form however you can add additional sections and regulations in the available space, if needed. Make sure all the sections and regulations you have tested are listed.

    Provide your unqualified, qualified or adverse opinion if you conclude that a material contravention of any of the listed provisions has occurred. You can do this by choosing the appropriate wording in the report that is to be used for each type of opinion and provide the year of income the opinion relates to.

    If you are unable to provide an opinion you should choose the wording appropriate for a disclaimer of opinion in the footnotes to the report.

    If you provide a qualified, adverse or disclaimer of opinion, provide details of the basis for that opinion in the report.

    If you are satisfied that the fund has not contravened any of the provisions listed, leave this section blank.

    Part B of the audit report contains the statement that the audit has been conducted in accordance with applicable Standards on Assurance Engagements. This refers to those standards issued by the AUASB. You also need to ensure you have complied with the independence and ethical requirements set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (2018) when undertaking the audit

    Modifying Part B of the audit report due to COVID-19 relief specific to 2019–20 and 2020–21 financial years

    When undertaking the Part B compliance engagement audit on the fund, you may identify contraventions that are of the type we have advised do not need to be reported to us in the addendum to the Auditory/actuary Contravention Report (ACR) for the 2019–20 and 2020–21 financial years. A list of these contraventions is in the table below.

    Table: Contraventions – 2019–20 and 2020–21

    Section or regulation

    ACR reporting is not necessary

    Section 65

    Where financial assistance comprising a rental waiver, reduction or deferral has been provided directly or indirectly to a related party tenant due to the impacts of COVID-19 on commercial terms.

    Section 65

    Where financial assistance comprising loan repayment relief is provided to a related party on commercial terms.

    Section 84

    Where an in-house asset contravention arises as a result of a rental deferral (constituting a loan) provided to a related party tenant on commercial terms.

    Section 84

    Where an in-house asset contravention arises as a result of a rental deferral (constituting a loan) provided by a Division 13.3A entity to a tenant on commercial terms, causing the fund’s investment in the entity to cease being exempt from the in-house asset rules.

    Section 84

    Where the fund’s assets exceed the 5% in-house asset threshold as at 30 June 2019 however a plan to dispose of the excess by 30 June 2020 is unable to be executed due to the impacts of COVID-19.

    Section 84

    Where the fund’s assets exceed the 5% in-house asset threshold as at 30 June 2020 due to the impacts of COVID-19 however a plan to dispose of the excess by the end of 30 June 2021 is unable to be executed because the market has not recovered or it was unnecessary to execute the plan because the market has recovered.

    Regulation 6.17

    Where a SMSF member provides the trustee with a determination pursuant to regulation 6.19B, however payment of the benefits is not made, or a lesser sum than the amount stipulated in the determination is paid as a result of the member changing their mind.

    You will still be required to determine if a modification of your opinion in the IAR is necessary for these contraventions. Even where a modification is not necessary, because for example you form an opinion that the contravention is not material, you must still notify the trustee of these contraventions. This could be done in the management letter to the trustee. We also recommend you add to the management letter that the Commissioner of Taxation will not be taking any compliance action against these contraventions for the 2019–20 and 2020–21 financial years.

    All other contraventions identified in the fund need to be reported to the trustee in the management letter pursuant to the requirements of section 129 of the Superannuation Industry (Supervision) Act 1993 (SISA) and reported to the Commissioner in the ACR where the reporting criteria is met.

    Signature

    Sign and date the report.

    See also:

    Lodging your report

    You must give the SMSF trustees a signed and dated copy of this report within 28 days after the trustee of the fund has provided to you all documents relevant to the preparation of this report.

    You should retain a signed and dated copy for yourself.

    Do not send us a copy of the report.

    Last modified: 15 Mar 2021QC 17604