Auditor Independence

There is a requirement for an SMSF auditor to be independent of the accounting function. This means if we prepare the accounts and tax returns, we cannot act as auditor for your Fund as well.

Independence Guidelines 

The Accounting Professional & Ethical Standards Board (APESB) has published an updated Independence Guide. Our approved SMSF auditors commit to comply with the independence requirements set out in the APES 110 Code of Ethics.

See below FAQ’s, that may help you understand what the new guideline means for your SMSF:

Can Superannuation Warehouse prepare financial statements and tax returns, and audit for my SMSF as well?

  • SMSF auditors cannot audit a Fund if their staff Member in the same firm has prepared the financial statements and tax return.
  • Using our accounting and tax lodgement service, clients’ SMSF will be audited by the external party. We will appoint and engage external auditors for our clients in order to meet the Independence standards.

If I, as an SMSF Trustee prepare financial statements and tax return drafts, can Superannuation Warehouse audit my Fund and lodge the tax return on my behalf?

At times, Trustees request SWA to lodge the annual tax return on their behalf. The reason for this is to lodge the tax return electronically. This approach is more effective than using the paper lodgdment process.

  • If the service provided by Superannuation Warehouse to audit clients is a route or mechanical service, the answer is yes. For instance, Trustee coded transactions and tax entries, where our firm audited and simply entered the tax data into our software to proceed with the lodgement electrically. In this case, the lodgement process requires a little or no professional judgment. It will be considered as a routine or mechanical service and exception of independence and self-review threat.
  • Generally, we requested our audit clients to provide the approved trial balance, signed financial statements, and Pro-forma tax return, which can reduce the self-review threat to an acceptable level.

You can access the auditor independence guideline here:

APES 110 Code of Ethics

Click here to see the relevant article regarding the new independence guide. If you would like to engage us to audit your SMSF, please click the button below to see what audit files to be provided:

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