SMSF auditors are engaged so that company can obtain an audited report for SMSF along-with audited accounts. Why company hire auditors for SMSF separately? Basically SMSF (self-managed superannuation fund) owns a separate legal status with company. Company pools the money into SMSF by a) making monthly deductions from salary of employees and b) by own contribution. Also, such pooled funds are then reinvested in some profit making ventures and SMSF would be managed as a separate legal entity. By virtue of its separate status in the eyes of law, here comes the need of recruiting qualified and professional accounting firms who can independently awesome financial statement auditors of SMSF. Just like any other entity, services of SMSF auditors include but limited to a) furnishing of final deliverables in form of audited accounts and audit report b) report on deficiencies and effectiveness of internal control c) assurance of timely communication with senior management on time to time basis d) assurance that company’s financial statements give true and fair view e) communication of any other matter which an auditor thinks is material and should be told to shareholders and senior management. Similarly, the scope of services and audit approach for SMSF is also same as for corporate entities.
People sometimes ask, either SMSF hire auditors merely due to a statuary requirement? No, hiring of SMSF auditors is lot more than that. There are countless rapturous factors which SMSF can grab from auditing, however some cardinal features are preparation of true and accurate accounting record, preparation of error free financial statements, assurance with local laws and regulations, significant improvements in entity’s existing internal control, detailed approach as how entity can improve its accounting system and internal control system etc. Moreover, as far as fee of SMSF auditors Adelaide is concerned, attention should be furnished here that audit fee is always depended upon the scope of work. Usually, scope for auditing and assurance services for SMSF is lower than ordinary corporate houses and resultantly, SMSF auditors usually charge comparatively less prices.
Just like any other service, no one can deny that competence and skill level of service provider is most pivotal, fundamental and material factor. Same goes for auditing and assurance services. Like, you always have to ascertain first that your recruited auditor should be immensely competent and qualified. Especially for auditing services, also consider industry specific experience of an accountancy firm on priority. ‘The more an accountancy firm would be familiar with an audit risk, better quality can be expected from auditing services”. For this purpose, one can see that almost every SMSF usually opt to engage auditors through their e-portals. This is because official online domains contain all relevant information about accountancy firms which should be considered always before hiring.