Free yourself from your SMSF audit dilemma Super Concepts provides an expert outsource auditing service to ensure true independence for self managed superannuation funds

Steps involved in the audit process

How can Super Concepts help you? Independent Audit Guide

You submit the SMSF Audit Request Form

Once we receive your request form, we will send you an Audit Guide including: s Audit Guide, including all details of what you need to provide

We send you the Audit Guide Trustees sign the Trustee Representation Letter

s Cover sheets for you to use to sort the supporting documentation s Trustee Representation letter template s Letter of Engagement template s Work Test Declaration template

Trustees sign the Letter of Engagement

s Retirement Declaration template

You forward requested documentation to auditor

s Auditor contact details

s Instructions on how to send documents in hard or soft copy

What does it cost? Auditor reviews and sorts documentation

Small Large Complex

$550 $750 By negotiation

(please contact Super Concepts to discuss)

Audit queries are raised by the auditor You provide the necessary information/documentation to allow audit to be completed You will usually receive Audit Certificate within 30 days

You lodge the SMSF tax return with the ATO

How to apply and more information The SMSF Audit Request Form can be accessed from the Forms, Documents & Tools tab of the Super Concepts website www.superconcepts.com.au If you have any queries in relation to the audit of your SMSF, please contact Super Concepts: Telephone: 1800 625 644 Mail: PO Box 182 Forest Hill VIC 3131 Email: [email protected]

Your logical choice for SMSF audits

Audit independence is one of the biggest challenges facing the SMSF industry. Super Concepts offers you a truly independent SMSF auditing service.

Benefits True independence Our independent SMSF Audit service gives you greater peace of mind when facilitating SMSF compliance requirements on behalf of trustees it can also can help reduce your liabilities. Easy to use We provide you with a step by step guide to ensure that all information needed to complete the SMSF audit can be provided by you at the outset. Fast turn around time The process is streamlined to make sure that SMSF audits are turned around quickly for you and/or your client. Cost competitive Competitive fixed pricing allows you to quickly and easily determine how much the audit will cost. SMSF audit expertise Our panel of auditors have over 20 years experience, so you and/or your clients can be certain that their SMSF is being audited by experts with extensive knowledge and expertise.

Additional benefits for accountants and advisers You retain control of the client relationship Super Concepts respects the relationship you hold with your SMSF clients. During the course of the audit, all contact will be between you and the independent auditor. Your clients will not be directly contacted at any stage. If there is a need to clarify any information or raise potential compliance breaches, all correspondence will be directed to you, including management letters and contravention reports. you can be assured that Super Concepts and our auditors will not at any stage contact your clients directly, or perform any other non-SMSF audit work for them. More time for you to focus on your clients Outsourcing SMSF audits will give you more time to focus on meeting the needs of your clients through the other core services of your business. At the same time you can reduce any training costs and/or productivity losses associated with keeping an internal auditor up to date, increasing the profitability of your SMSF administration.

Everything you need to know about our SMSF audits Who will be conducting the work, and how can I be sure about the quality of the audit? Super Concepts only selects auditors who meet strict professional standards. They are qualified auditors who have extensive experience with self managed superannuation funds (SMSFs), and are regarded as industry experts specialising in SMSF audits.

What happens after I send the documentation to the auditor? Our auditors will log receipt of the documents for audit, noting the date on which the audit is due to be completed and assign appropriate staff to complete the work.

How long will the audit take? Our auditors undertake to either complete the SMSF audit, or have corresponded with you where there are compliance problems, as soon as possible after receiving the fund for audit. Provided responses to the auditor’s queries are promptly attended to, the audit report should be issued within 30 days from the date on which the documentation was originally provided for audit. Should any delays occur which extend the service period (for example, due to incomplete documents) they will contact you as soon as possible on an expected completion date.

What happens to the documents I provide to the auditor? Hard copy documents will be returned to you at the completion of the audit. Copies will be retained by the auditor as part of the auditors working papers for the period required by the Superannuation Industry (Supervision) Act (SISA).

Can I email soft copies of information to the auditor? Yes. Our auditors prefer to receive documents in soft copy. These are either forwarded by email or uploaded directly to a dedicated SMSF audit server with the information in PDF or other soft copy formats. Instructions will be provided with the audit guide for sending documents in either ‘hard’ or ‘soft’ copy. Where electronic copies of documents are provided, there will be a requirement for a signed statement certifying the documents are true copies of the originals.

For accountants and advisers – will you or the auditor be contacting my clients? All contact during the course of the audit will be between you and our auditors. Your clients will not be directly contacted at any stage. It may be necessary to correspond with the trustees of the fund in relation to compliance breaches however all correspondence will be care of your office, including management letters and contravention reports. Your client’s details obtained through this service will not be used for mailing lists, marketing or promotional activities nor will they be provided to third parties. Our auditors guarantee that they will not perform any nonSMSF audit work for your clients or associates of the SMSF. Furthermore, you will be notified if your clients approach them to do so.

Do I have to send the fund’s Trust Deed with the other information? Yes. The Australian Taxation Office has specifically requested Approved Auditors to examine the fund’s Trust Deed and require them to state in the Audit Report that they have tested, and are satisfied, that the fund meets the sole purpose test requirements. In subsequent years’ audits, it will only be necessary to provide the deed if there is an amendment or upgrade.

What will I receive upon completion of the SMSF audit?

What happens if errors are found in the financial statements?

There are several scenarios that can occur relating to the finalisation of the audit:

This will depend on whether the errors are material.

s There are no matters arising from the audit. The auditor will issue the audit report and send to you together with any source documentation that needs to be returned. s There are minor queries, missing information or changes to the financial statements. These will need to be resolved before the auditor can finalise and sign off the audit, but would not prevent the auditor from issuing an unqualified audit opinion. The auditor will forward you a list of these matters and you should make the requested changes and obtain any additional information requested. The query list will need to be returned with your comments, the signed financial statements and any additional information requested. s There are major queries, significant missing information, errors or breaches. The auditor will contact you to discuss the audit and resolve these matters before forming the audit opinion. s There are circumstances requiring the auditor to communicate matters to the Trustees of the fund. A management letter will be issued along with the signed audit report. s There is a compliance breach deemed reportable by the Australian Taxation Office’s reporting criteria. An auditor contravention report will be lodged and provided along with the signed audit report and management letter. An auditor contravention report will not be lodged until after the issues have been communicated to you.

Material – Our auditors will only qualify an audit if a material error or omission is found in the financial statements and you do not adjust this prior to the audit opinion being signed. Immaterial – Our auditors will not qualify an audit if the error or omissions are immaterial. However, you should be aware that auditing standards may require the auditor to notify the Trustee of immaterial errors that are not adjusted before the audit opinion is signed.

What happens if a breach of the SISA or SISR is discovered? Our auditors will only qualify an audit if a breach of the relevant provisions of the Superannuation Industry (Supervision) Act (SISA), or its accompanying Regulations (SISR), is material. Where there is a material breach of the relevant provisions of the SISA or SISR, our auditors will lodge an Auditor Contravention Report with the Australian Taxation Office as well as issuing a qualified audit report. While our auditors will take a pragmatic view, and no audit report will be qualified or Auditor Contravention Report lodged without first corresponding with you and/ or the fund’s Trustees, they are bound to comply with the Australian Auditing Standards and the reporting criteria prescribed for Auditor Contravention Reports from 1 July 2008.

How are the audit fees determined? Fees are based on the size and complexity of the fund being audited. Small – Less than ten investments, no related party transactions, and no exotic investments. Large – More than ten investments, related party transactions, or exotic investments. Complex – Please liaise with Super Concepts for funds that are complex, or have special circumstances so that we can work with you to achieve the required outcome.

Phone 1800 625 644

Email [email protected]

Website www.superconcepts.com.au

Postal address

All prices quoted include GST and postage. This material is issued by Super Concepts Pty Limited (ABN 67 007 437 907), a Corporate Authorised Representative of RI Advice Group Pty Limited (ABN 23 001 774 125, AFSL 238 429). This information is current as at August 2011 but is subject to change. It is of a general nature and does not take into account your personal needs, financial circumstances or objectives. Before acting on this information, you should consider the appropriateness of the information, having regard to your needs, financial circumstances and objectives.

L7018/0811

PO Box 182 Forest Hill VIC 3131