Resources & FAQ — Gippsland Audit Solutions

Question 1

What does an SMSF audit involve?

Accepted Answer

An SMSF audit has two components: a financial audit and a compliance audit. The financial audit reviews the fund's financial statements to ensure they are accurate and prepared in accordance with Australian Accounting Standards. The compliance audit checks that the fund has operated in accordance with the Superannuation Industry (Supervision) Act 1993 (SISA) and associated regulations throughout the year.

Question 2

How long does an audit take?

Accepted Answer

Our standard turnaround is 7 business days from receipt of complete documentation. Rush turnaround is available on request — contact us to discuss your timeline. Turnaround times can be affected by incomplete documentation or queries that require trustee input, so we recommend submitting a complete audit package where possible.

Question 3

What documents do I need to provide?

Accepted Answer

We require the fund's financial statements, bank statements, investment statements, trustee declarations, and any relevant supporting documents (e.g. property valuations, LRBA loan agreements). We'll provide a detailed checklist when you engage us. Our referral checklist page also has a printable version you can use when preparing audit packages.

Question 4

How do I submit documents for audit?

Accepted Answer

Documents can be submitted via email or our secure document portal. We'll confirm receipt and advise of any missing items promptly. All documents are handled in accordance with Australian Privacy Principles and stored securely.

Question 5

What happens if a contravention is identified?

Accepted Answer

If we identify a contravention of the SIS Act or regulations during the audit, we are required by law to lodge an Auditor/Actuary Contravention Report (ACR) with the ATO. Before lodging, we will contact you to discuss the contravention, confirm the details, and give you the opportunity to provide any additional context. We aim to make this process as straightforward as possible.

Question 6

What are the most common SMSF contraventions?

Accepted Answer

Common contraventions include: loans to members or related parties, in-house asset rule breaches, failure to maintain a current investment strategy, sole purpose test issues, and non-arm's length income (NALI) concerns. Limited recourse borrowing arrangements (LRBAs) are also a frequent area of scrutiny, particularly related party loans that don't meet ATO safe harbour guidelines.

Question 7

Can contraventions be rectified before the ACR is lodged?

Accepted Answer

In some cases, yes. The ATO's approach to contraventions depends on the nature and severity of the breach, whether it has been rectified, and the fund's compliance history. We will discuss the options with you before lodging any ACR. Where rectification is possible and appropriate, we will document this in our audit file.

Question 8

What is the sole purpose test?

Accepted Answer

The sole purpose test requires that an SMSF be maintained for the sole purpose of providing retirement benefits to members, or death benefits to their dependants. A fund fails the sole purpose test if it provides a financial benefit to a related party before a condition of release is met — for example, if a trustee uses a fund-owned property for personal use.

Question 9

How do I refer a client for audit?

Accepted Answer

Simply contact us by phone or email with the fund details and we'll set up the engagement. We'll send you a checklist of required documents and confirm our fee. For practices referring multiple funds, we can set up a standing referral arrangement to streamline the process. Our referral checklist page has a printable guide you can use when preparing audit packages.

Question 10

What are your fees?

Accepted Answer

We charge a fixed fee per audit, with no hidden charges. Our fees are competitive and we offer volume discounts for practices referring multiple audits per year. Contact us for a fee schedule or to discuss pricing for your practice.

Question 11

Do you work with all SMSF administration software?

Accepted Answer

Yes. We work with BGL Simple Fund 360, Class Super, SuperMate, and manual or other formats. Our audit reports are delivered in a format compatible with the major platforms. If you use a different system, contact us to discuss.

Question 12

Are you available outside business hours?

Accepted Answer

We operate by appointment only, Monday to Friday during business hours. However, we understand that end-of-year periods can be demanding and we do our best to accommodate urgent requests. Contact us to discuss your requirements.

Common questions about SMSF auditing

About the audit process

Compliance & contraventions

Working with us

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