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ATO warns auditors to check fund assets with written confirmation
The Australian Taxation Office (ATO) has warned SMSF auditors to ensure there are no charges over fund assets as part of completing an annual fund audit.
The regulator said auditors should obtain evidence annually that trustees have not given a charge over or in relation to a fund asset by seeking written confirmation from trustees and by reviewing the property title to check for encumbrances on real property and the Personal Property Securities Register to check for other parties registering interests against other SMSF assets.
It stated that compliance cases over the last 12 months have identified that a number of auditors have not been gathering appropriate audit evidence to confirm assets held by a fund are not subject to charges.
Referrals to the Australian Securities and Investments Commission (ASIC) have also included auditors who, among other issues, have failed to identify or report contraventions of regulation 13.14 of the Superannuation Industry (Supervision) Regulations (SISR).
Regulation 13.14 of the SISR is a reportable contravention when the reporting criteria have been met.
For audits of funds that hold property assets, auditors should obtain and hold appropriate evidence to confirm the fund has complied with regulation 13.14 of the SISR.
To assist in completing an audit, the ATO has provided a guide – Compliance Audit information.
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