If you are one of the many who own a SMSF (self managed super fund), you have to know that at least once a year an audit must be conducted by a registered auditor. SMSF audit is a review and examination of all financial statements of your fund and if it is in comliance with all SMSF regulations and laws. Before SMSF audit begins, the approved auditor will ask for representation letter from the SMSF trustees. The letter is a statement from the trustees which usually states that they believe the financial statements are a good representation and that the super fund meets all the superannuation laws.
The SMSF auditor must give you an audit report before the date of your SMSF yearly return. This means that the auditor, according to ATO, must give you the audit report before the lodgement date of your SMSF annual return and must report to the ATO if there are any disorders of the superannuation law. As we said, annual financial audit of your SMSF is required and the cost of one differs depending on the audit company you choose.
The costs and SMSF audit fees of your DIY SMSF depend on many factors:
- Difficulty of the super fund;
- Number and difficulty of investment strategies;
- Number of members;
- Number of transactions;
- If the super fund is in pension stage;
- Number of members in the accumulation and pension stage;
If SMSF provider does not want to give you required information, don’t use his services. If you want to know how much will an audit cost you and all about SMSF audit fee, you can visit the official website of ATO (Australian Taxation Office) and get the most accurate and up-to-date information. According to latest information released by the ATO on the SMSF costs, a super fund’s yearly return and audit vary from $600 to $1 000. If an SMSF has many complicated investments and transactions the SMSF fee can reach up to $3 000 or more.