Want a speedy audit? It’s in the accountant’s hands.

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 “if you are an accounting practice with SMSF clients, please listen to this podcast” request. Please do (well at least the bit after the tax cuts commentary 😆 ).

It hits the nail on the head why auditors ask for information, (around 32 minutes in) how an audit file is constructed (“the devil in the detail” comment from Shelley Banton), what information is mandatory for a complete audit file (and why/where a lack of documentation slows an audit down, especially as the Net Run Rate increases up to 15th May) and why a complete, proper, high quality, independent audit protects clients, accountants – everyone in the food chain.

https://www.smsfadviser.com/podcasts/23162-the-challenges-for-auditors-in-2024?utm_source=SMSF%20Adviser&utm_campaign=31_01_24&utm_medium=email&utm_content=1&utm_emailID=560180ea40322a1edf81f781c61981b54b85ee799d51c32262e80431cab576fa

It is imperative that the auditor does their job. It’s our livelihood (especially if the regulators come after us), and guaranteed if the ATO have a look at the auditor, they’ll look at the fund.

They’ve referred about 20 auditors in the last year to ASIC (the ATO can’t cancel SMSF Auditor registration, but they can talk to the people who can).

In the same time, 600 SMSF trustees have been disqualified by the ATO (where they have the real power). This means, they are obligated to wind up their fund and hand the reins back to someone else (assuming they don’t do some legal skulduggery with LPRs).

What one can figure out from this is, if the ATO are after auditors, they are after trustees more. If an auditor is found to be deficient, you can take it to the bank that they will look at all funds they audited for scrutiny.

By having an auditor who does their job right, even if it’s a touch annoying at times, you protect your clients and your firm. Trustees know that “my auditor is asking for things”, means “my auditor is protecting themselves and me”, not “the auditor should just accept my explanation and sign the report”.

Those days are over.

#smsf #smsfaccountant