If you think pension and SMSF rules are changing rapidly, then think of SMSF examiners who may be on the verge of a series of reforms. While the SMSF exam may not sound appealing to many, it plays an important role in ensuring funds comply with pension laws and can help funds avoid paying unnecessary taxes. So audit has a valid role for SMSF. To get more information regarding SMSF audit services, you can visit this site.
Why is a pension fund audit important?
Many years ago and before the SIS2 law came into effect, the ATO required pension funds to become independent auditors to provide tax incentives. This original idea continued and grew so significantly that the role of the auditor for all pension funds is now an integral part of the law and requires registration of the SMSF auditor with ASIC.
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Under the SIS Act, SMSF trustees are required to appoint an auditor to report on fund operations for the financial year. The appointment must be made 45 days before the IMF's annual account submission.
Any requests for information from the auditor to prepare a report must be submitted to the auditor within 14 days. Trustees who do not meet these requirements may be subject to sanctions.
So if the company auditing the SMSF changes this year, the Trustee needs to be careful and patient to address some of the internal independence issues that may need to be addressed while auditing the SMSF and the services they provide.