SPAA South Coast December 2013

Thinking like an auditor

to greatly improve your SMSF advice

Jo Heighway

CEO

ENGAGE Super Audits

www.superfundauditors.com.au

THE AUDITOR, THE ATO….& THE CLIENTClarifying relationships

An interesting poll…..Who does your auditor work for?

“…an employee of the tax office”?!!!


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


o-operation

To build long-term relationships:

ommunicationC

C

C

C

onsistency

ALM

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

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


• Specialist SMSF Auditor (ASIC registered)

• Understands who they work for

• Technology/Systems focused

• INDEPENDENT

• A commercial business decision, not a legislative decision!


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?


AUDITOR REPORTING & ACRs

AUDITOR REPORTING & ACRsRE: 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 auditThe following issues were noted during the course of my audit which I would like to bring to your attention:

1/ Loan to Members – breach SISDetail facts of the eventAction RequiredDetail recommended course of action

Tip #1 Complete advice that covers the life of

the investmentTip #2 Consider every

SIS rule that may applyTip #3 Dot the i’s and cross the t’s

Everyone grab an “audit hat”

Tip #4 Address the practicalities Step by Step

Tip #5 Think about “what

could go wrong”


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

investmentTip #2 Consider every SIS rule

that may apply

Tip #3 Dot the i’s and cross the t’s


• Communicating from Day One

• Pre- Audit checklist

• Save time and aggravation!

• Minimise the assumptions your auditor has to make

Get Proactive with your auditor

THE BIG PICTURERectification & Education

Calm ClientsRectified ACRsLong term relationships (respect)Educated clients (accountant AND trustee)Reduction in ACR lodgement percentagesPro-active breach preventionNo ATO non-complying fund notices

Jo Heighway

ENGAGE Super AuditsCentral Coast NSW

Gold Coast QLD

** New Loyalty Program **

2 free audit trial for attendees

Ben Gill 0400 627 010


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.

SPAA South Coast December 2013

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Transcript of SPAA South Coast December 2013