Norwood, South Australia -- (SBWIRE) -- 09/06/2013 -- The Australian Taxation Office (ATO), as regulator of Self Managed Super Funds, places great importance on the annual tax audit. The purpose of this audit is to provide an independent report to the trustee that there are no material errors in the financial statements and that any SIS breaches are identified and reported to the ATO.
As a significant part of the regulatory framework for Self Managed Super Funds, it is important that the audit is performed independently of the accounts preparation. The standard of independence applied is that contained in the Code of Ethics for Professional Accountants, Section 290. This is applied to all SMSF auditors not just CA’s and CPA’s. The ATO is clamping down on situation where the accountant for the SMSF also performs the annual audit.
With effect from 1 January 2013, the Code introduces additional independence requirements for audits of SMSF’s. Specifically;
- An auditor cannot audit an SMSF where the individual auditor has significantly prepared the accounts for the SMSF.
- An auditor cannot audit an SMSF where staff reporting directly to them have prepared the accounts (APES 110, Sections 290.162, 290.163 and 290.171)
In the past, some accounting firms have created ‘Chinese Walls’ and retained the audit function in house; this has saved clients money and time. The changes mean this can no longer happen.
As a professional SMSF Accountant Adelaide, Business Initiatives outsources SMSF audits to an independent firm in Sydney.
Because they provide accounting, tax and strategic advice services to their SMSF’s, they manage a number in excess of 120.
This has allowed Business Initiatives to secure significant discounts in respect of their clients audits to continue saving them money.
If you or your family and friends need a proactive accountant who develops strategies to save tax for business and individuals using SMSF, call Business Initiatives today.
They’re pretty confident they can save you audit costs also.
About Business Initiatives
Business Initiatives is a progressive Chartered Accountancy and Loan Broking Firm that offers its clients total financial solutions. We provide expert proactive advice in the areas of tax, accounting, loans and self managed super funds. We have developed proven strategies to help you boost your wealth.
Author: Matthew White
20D William Street NORWOOD SA 5067 Ph: (08) 8431 7444