The ATO said an SMSF’s approved auditor must be registered with the Australian Securities and Investments Commission and that the fund would need to provide the SMSF auditor number on their SMSF annual return.

“Your approved SMSF auditor must be independent, as auditors shouldn’t audit a fund in which they hold any financial interest in, or where they have a close personal or business relationship with members or trustees,” the Tax Office explained.

“They also shouldn’t audit a fund where they work for a firm who provides your fund with other services such as certain accounting services, tax, super or financial planning advice.”

The SMSF’s audit must be finalised before the SMSF annual return is lodged, the ATO explained, as the SMSF trustee will need information from the audit report to complete the return.

“You must also ensure the correct auditor details are provided in the SAR, otherwise you may be penalised,” the ATO cautioned.

“Approved SMSF auditors can be busy so it’s a good idea to start this process early.”