Those who run SMSFs (the Trustees) are the ones ‘doing the doing’ of running their SMSF. That’s the whole point, right? Yep, but it does have its downsides. Some trustees will think “hey, this is a great idea” and do something without checking with their accountant and certainly their auditor. Why? Lack of education. The…
I can do an audit from receipt to sign off in 2 days easily. Even one day at a pinch. But oftentimes, it’s usually a bit longer than that, maybe a week. The question is why. I came across this on LI (and via some SMSF specialist magazines I regularly read), and this is an…
ATO QC73189 regarding SMSF Auditor Outcomes for the 2022-2023 Financial Year. Key points? 41 auditors referred to ASIC from ATO421 Auditors acted against by ASIC in 2022-2023 Key reasons: *Failure to lodge annual statements*In house audits*Inadequate evidence (especially market value)*Inadequate audit files and documentation*Failure to gather evidence for compliance of LRBAs I am and will…
On 17.08.2023, the ATO issued QC 73156, with little fanfare, but huge implications. Basically, the ATO view it as mandatory to do a title search, in order for an auditor to substantiate a conclusion that, yes, the fund has no charge over an asset and is compliant with SIS Reg 13.14 (obviously there is an…
Superstream Audit Dangers! Among the myriad of changes that occur each financial year, some get a huge amount of attention (I’m looking at you LMITO), others seem to sneak by without a whimper. The requirement from 1st July 2023 that *all* rollovers in and out of funds must go via Superstream falls into the whimper…
Another 8 SMSF Auditors disqualified or having additional requirements placed on their registration. This is addition to the other 413 since the start of CY2023. That makes it either 420 or 421 (one of the 8 was previously an ‘additional requirements’ auditor, so he might be double counted). Looking at the reasons for most of…
We all like to paint the ATO as the bad guy. Detached from reality, unrealistic expectations, excessively strict interpretations of the law. As a result, SMSF auditors are often viewed as their lackeys. SMSF Auditors try to paint the ATO as the bad guys, because we are beholden to their interpretations. However, when it comes…
In the first article, we looked at the dictionary definitions of “formulate” and “give effect to”, as contained in SIS Reg 4.09. Now, we’ll look at why the ATO’s views will help fund members to achieve a better outcome. The issue I have with many off the shelf or FP prepared strategies, is that firstly…
In the first two articles, we considered risk to the trustees of others accessing the account and how the trustees formulating and giving effect to the strategy reduces this risk. We also considered why “considering a decision” isn’t the same as actually making and implementing it. Now, we will consider why this strict ATO interpretation…
17 years. That’s how long I’ve spent exclusively in Superannuation roles. Just long enough to see the changeover to Simpler Super and more than enough time to watch the train-wreck that is the Transfer Balance Cap. Interestingly, I’ve spent about 50/50 of that time switching between SMSF Accounting and SMSF Auditing roles, until getting my…