Before dealing with important things which one should know about SMSF auditors, here consideration should be given on the concept of SMSF. SMSF (self-managed superannuation fund) is a benefit plan to which an employee will be entitled after retirement. If we talk about its classification, it is a long term post retirement plan. It is structured and designed in order to affirm ease and comfort of employees after their retirement. Government of every state has published and imposed stringent legislations and restrictions to companies and due to which, every company has to manage a superannuation benefit plan in form of SMSF. In order to assure effectiveness of operations of this fund, another legal restriction has also been imposed regarding auditing of financial statements of SMSF. Yes, management of SMSF is legally bound to hire independent auditors who would furnish an independent audit report to members or shareholders. Such report is prepared and published with a sole objective of enhancing understanding of stakeholders about SMSF’s financial performance. As you know, in corporate sector, investment decisions are usually envisaged by analysing accounting record. So, one can evaluate the importance of financial data of SMSF and so of its SMSF auditors Melbourne.
That is why, one can easily observe that management of every SMSF hire independent external great financial auditors for auditing of financial data of a fund. There services incorporate execution of lot of auditing procedures such as a) variance analysis with past records b) ratio analysis c) analytical procedures d) detail testing of transaction etc. Here, attention should be given that audit is a structured and risk based approach. No auditor in this world can verify each and every entry. Audit is usually conducted on sample basis. Size and nature of sample depends upon the business risk with respect to an environment in which an entity operates. So, from above, it would not be difficult to construct that auditing is an immensely technical and specialised job. This complex activity should be handed over to best and extremely qualified accounting firms who also possess massive experience of auditing in similar industry.
Especially for auditing, it should always be considered that either a proposed auditing firm possess an exposure in a similar industry. Like, for SMSF auditing, it is advisable to recruit only those accounting firms who have audited SMSF, mutual funds or similar nature industry. Here, question is how one can assure industry specific experience in auditing firms before hiring? The best and notable method to do this is sometimes refer to’ e-recruitment of auditing firms’. This is because online web-portals of these skillful providers show true and relevant information about their achievements, competence, recognition and experience.