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What does an SMSF auditor need before you lodge the annual return?
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Overview
Book the SMSF auditor at least 45 days before your fund’s annual return is due. Gather evidence for what the fund owns, what it’s worth and any unusual transactions during the year. Overview
Count back from the return due date
Even a fund that made only a handful of transactions during the year needs an annual audit.
Appoint the auditor at least 45 days before the SMSF annual return is due. The audit has to be completed before you lodge. Confirm the fund’s own due date with your tax agent and give the auditor a contact who can explain unfamiliar transactions. If the auditor requests documents in writing, trustees generally have 14 days to provide them.
Gather evidence for what the fund owns
Start with year-end bank and investment statements, accounts, relevant trust deed changes, minutes and the investment strategy. Add documents for contributions, pension payments, purchases or sales during the year. For property, retain evidence that supports the year-end market value and the ownership arrangement, plus any lease and borrowing documents.
For example, a workshop appears in the accounts at the same value as last year. A trustee minute repeating the figure won’t tell the auditor what the market did. Dated comparable sales, a suitable valuation or other objective evidence can help explain the figure you adopted. Discuss what’s appropriate for the property and circumstances.
