Finding a cheap self-managed super fund (SMSF) audit is like encountering a shark while out swimming – it’s unlikely you’ll find one nowadays, and it’s risky if you do!
That’s why, when looking for a SMSF auditor, you should focus on the ROI you gain from their service and the security that comes from ensuring superannuation fund compliance.
Audit ROI is more important than the cost of the flat fee.
Why are cheap, flat-fee SMSF audit services increasingly hard to find?
Both the Australian Tax Office (ATO) and Australian Securities and Investments Commission (ASIC) have been more closely monitoring auditor practices since the introduction of SMSF auditor registration in 2013. The bodies have not been reserved about their intentions to keep an eye on audit firms which offer bundled packages and cut-price services.
The ATO and ASIC have monitored SMSF auditors closely since registration was made compulsory.
Concerns over the quality offered by cheaper audits have plagued SMSF trustees and regulators for years, resulting in several prominent court cases against auditors.
Essentially, those regulating the auditors are scouring the industry with a fine tooth comb – which means those conducting the audits must leave no stone unturned or figure left unchecked. In such a litigious environment, it is critical that SMSF administrators and trustees don’t settle for sub-standard auditing services. When selecting a partner for their next audit, quality of service should always be the number one priority.
High-quality audits ensure total compliance with ATO regulations for Australian SMSFs.
Why is ROI important when choosing an independent SMSF auditor?
When looking for an SMSF audit, consider instead what you could gain from choosing quality over price. A high quality SMSF audit delivers return on investment (ROI) that extends far beyond any price tag, and can improve your overall functioning as a business.
ROI – Improved ATO compliance
Qualified superannuation fund auditors know ATO compliance regulations inside-out and complete the following duties to a high degree of competency:
- Test identified issues against auditor/actuary contravention report (ACR) criteria.
- Record judgments within an auditor’s report and file them as ‘working papers’.
- Notify any SMSF trustees in writing about potential legal contraventions and report findings to the ATO through the ACR.
ROI – Assured auditor independence
With recent shifts in regulation of auditor independence, it is critical that SMSF administrators and trustees work with a partner that is clearly devoid of conflicts of interest. Independent, authorised, efficient SMSF auditors deliver a level of assurance that is, sometimes, desperately lacking.
ROI – Better quality reporting and fund insight
They say ‘sometimes you cannot see the forest for the trees’ – this point has great relevance to hiring an SMSF auditor. An independent audit, backed with advanced reporting software, will examine the validity and accuracy of an SMSF’s financial records and offer deep insight into your fund compliance with the superannuation rules. SMSF auditing, in this way, is the critical eye your funds’ trustees need.
From there you can enact changes to your management structure or investment plan to keep your fund in line with critical regulations and enhance its performance in the long term.
Quality financial reports offer deep insight to help you more effectively manage your SMSF.
ROI – Improvement through automation and specialist guidance
The best in the industry can go above and beyond simple data analysis processes to add value to SMSF accounting practices. When you pay for enhanced auditing expertise, you don’t just gain an auditor – you have the benefit of a dedicated fund partner.
Specialist insight into the best auditing practices can fit into two categories: technological improvement and personal guidance.
- Automating manual data entry, dealing with queries and downloading reports reduce the time spent on administration tasks. Instead, auditors are handed all of the data needed to provide value-added insights into your SMSF’s performance instantly. Saving time means saving money in your operations.
- Quality auditors build processes around their clients. Low fees often mean a carbon copy solution presented to each SMSF administrator. The best businesses build a deep understanding of how your SMSF works, analysing risks and opportunities to tailor a unique plan of action to you. A generic service will give generic insight – so save your time, and your accountants!
Evolv Super can manage all aspects of SMSF auditing, from providing simple audit software to a comprehensive auditing solution.
Evolv – Independent SMSF auditing with a difference
Evolv provides high-quality SMSF audit services based around an integrated process combining financial technology and specialist super fund auditing advice. Using this unique approach, we now conduct nearly 10,000 audits a year for leading organisations nationwide.
Our auditors are dedicated to meeting your business requirements – our advantage in an industry where other SMSF audit firms usually adopt a ‘one-size-fits-all’ plan. To find out more about our points of difference when delivering auditing excellence, contact Evolv now.