Our reviews continue to identify cases where auditors miss disqualified trustees during SMSF audits.
If you identify a disqualified person, qualify Part B of the independent auditor's report and lodge an Auditor Contravention Report (ACR).
We see some common mistakes. These include relying only on the trustee representation letter or a tax agent, not checking the relevant registers, assuming we already know, or deciding not to report because the trustee has lodged an appeal or the fund is winding up.
Red flags during the audit should prompt you to check further. For example, you may identify signs of personal financial difficulty or serious contraventions of the Superannuation Industry (Supervision) Act 1993 (SISA). In these cases, do not rely on written representations alone.
Read our updated Compliance audit of an SMSF guidance to understand what to check, when to check and which registers you can use. Review the guidance and make sure your audit approach, including your trustee representation letter, reflects these requirements.
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