AVOID THESE TRAPS FOR A FAST SMSF AUDIT

27 October 2022

These common culprits can regularly get in the way of SMSF audits. To ensure a fast turnaround of an SMSF audit, be sure to avoid the following.

1) Missing source documents. These are often the permanent documents, especially LRBA (Limited Recourse Borrowing Arrangements) source documents. Ensure that these are all on file.

2) Failure to respond to a ‘prior year management letter’ request. These often apply to revaluations, but they can also apply to other things including leases. Always check the ‘prior year management letter’ before preparing the current year accounts.

3) Failure to comply with the ATO’s current year watchlist. In the 2022-23 financial year ‘market valuations’ are on the ATO watchlist. This watchlist regularly changes. For example, in a recent year the ATO watchlist was on ‘investment strategies’, particularly diversification issues. So, it’s necessary to keep up with the ATO’s focus - don't ignore it.

4) Failure to respond to your SMSF auditor’s queries in a timely manner.

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Schedule a free SMSF audit consultation with the Superannuation Audit Services team.