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Self-managed superannuation fund independent auditor's report

How to complete the self-managed super fund (SMSF) independent auditor's report (IAR) (NAT 11466).

Last updated 19 June 2024

Overview

For all audits completed on or after 1 July 2024 you must use the Self-managed super fund independent auditor’s report (IAR) (NAT 11466, DOCX, 703KB)This link will download a file. This includes audits you complete on or after this date regardless of what income year they apply to.

When using the form to complete audits for reporting periods ending on or before 30 June 2024 you must take care to comply with the auditing standards and legislation that applied to that earlier period.

The IAR was changed for the reporting period starting 1 July 2024 to modify the following:

  • Part B – the option to apply Auditing Standard ASQC 1 has been removed due to being superseded on 15 December 2022 by Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services. Systems of quality management in compliance with this ASQM must be designed and implemented by 15 December 2022.

None of the sections or regulations listed at Appendix 1 of the report requiring compliance assurance have been changed.

Professional requirements

To complete the IAR, SMSF auditors should ensure that they are meeting the professional requirements of approved SMSF auditors.

Auditor independence

Approved SMSF auditors must comply with prescribed independence requirements as part of their professional obligations under the Superannuation Industry (Supervision) Act 1993 and Superannuation Industry (Supervision) Regulations 1994.

These requirements are detailed in APES 110External Link Code of Ethics for Professional Accountants (including Independence standards) (2018) – effective 1 January 2020 (the Code).

The independent auditor's report includes a specific commitment that the auditor has complied with auditor independence requirements.

For more information on auditor independence and the requirements of the Code, see the:

For more information see:

SMSF independent auditor's report

You can download the Self-managed super fund independent auditor’s report (IAR) (NAT 11466, DOCX, 703KB)This link will download a file for reporting periods starting on or after 1 July 2024 meaning all audits completed on or after 1 July 2024.

When using the form to complete audits for reporting periods ending on or before 30 June 2024 you must take care to comply with the auditing standards and legislation that applied to that earlier period.

The Self-managed superannuation fund independent auditor’s report (NAT 11466) is the approved form referred to in Section 35C(6) of the SISA. You must give all the SMSF trustees a report on the operation of the SMSF, in the approved form, 28 days after the trustee of the fund has provided all documents relevant to the preparation of the report to the auditor.

The report can only be used for SMSFs and former SMSFs.

Completing this report

Complete the Self-managed super fund independent auditor’s report (IAR) (NAT 11466) for the applicable year by completing the following:

Approved SMSF auditor details

Provide your details as the approved SMSF auditor, including your:

  • name
  • business name
  • business postal address
  • SMSF auditor number (SAN), issued by ASIC.

SMSF details

Provide details of the SMSF you are auditing, including the:

  • name as it appears on the trust deed
  • Australian business number (ABN) or tax file number (TFN)
  • address
  • year of income you are auditing.

If you are auditing more than one year, you must use a separate report for each year.

Part A: Financial audit

Provide the title of the financial report you have audited. Include a summary of significant accounting policies and any other explanatory notes.

Provide the year of income you are auditing.

You can add any additional material or notes on the lines provided.

Provide your unqualified, qualified or adverse opinion on whether the financial report presents fairly in all material respects in accordance with the accounting policies described in the notes to the financial report. You can do this by choosing the appropriate wording in the report that is to be used for each type of opinion and provide the year of income the opinion relates to.

If you are unable to provide an opinion on the financial report, you should choose the wording appropriate for a disclaimer of opinion in the footnotes to the report.

If you provide a qualified, adverse or disclaimer of opinion, provide details of the basis for that opinion in the report. New auditing standards commenced operation for reporting periods beginning on and from 1 January 2010. Where your audit is for such a period, include the basis of accounting section indicated in Part A of the audit report; otherwise, delete this paragraph.

Part A of the audit report contains the statement that the audit has been conducted in accordance with Australian Auditing Standards. This refers to the auditing standards issued by the AUASB. When undertaking the audit, you also must ensure you have documented your compliance with the relevant independence and ethical requirements in APES 110External Link Code of Ethics for Professional Accountants (including Independence standards) (2018).

When completing the Self-managed super fund independent auditor's report (IAR) (NAT 11466, DOCX,703KB)This link will download a file ensure you action the new clause included in the Basis of Opinion paragraphs. You will need to strike out one of the options about the preparation of the financial statements.

Part B: Compliance engagement

No sections can be removed from the approved form. However, you can add additional sections and regulations in the available space, if needed. Make sure all the sections and regulations you have tested are listed.

Provide your unqualified, qualified or adverse opinion if you conclude that a material contravention of any of the listed provisions has occurred. You can do this by choosing the appropriate wording in the report that is to be used for each type of opinion and provide the year of income the opinion relates to.

If you are unable to provide an opinion you should choose the wording appropriate for a disclaimer of opinion in the footnotes to the report.

If you provide a qualified, adverse or disclaimer of opinion, provide details of the basis for that opinion in the report. If you are satisfied that the fund has not contravened any of the provisions listed, leave this section blank.

Part B of the audit report contains the statement that the audit has been conducted in accordance with applicable Standards on Assurance Engagements. This refers to those standards issued by the AUASB.

When undertaking the audit, you also need to ensure you have documented your compliance with the relevant independence and ethical requirements in APES 110External Link Code of Ethics for Professional Accountants (including Independence standards) (2018).

When completing the Self-managed super fund independent auditor's report (IAR) (NAT 11466, DOCX, 703KB)This link will download a file ensure you review the reference to Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements.

Systems of quality management in compliance with this ASQM are required to be designed and implemented by 15 December 2022.

Modifying Part B of the audit report due to COVID-19 relief specific to 2019–20, 2020–21 and 2021–22 financial years

When undertaking the Part B compliance engagement audit on the fund, you may identify contraventions that are of the type we have advised do not need to be reported to us. These can be found in the addendum to the Auditory/actuary contravention report (ACR) for the 2019–20, 2020–21 and 2021–22 financial years. A list of these contraventions is in the table below.

Table: Contraventions – 2019–20, 2020–21 and 2021–22

Section or regulation

ACR reporting is not necessary

Section 65

Where financial assistance comprising a rental waiver, reduction or deferral has been provided directly or indirectly to a related party tenant due to the impacts of COVID-19 on commercial terms.

Section 65

Where financial assistance comprising loan repayment relief is provided to a related party on commercial terms.

Section 84

Where an in-house asset contravention arises as a result of a rental deferral (constituting a loan) provided to a related party tenant on commercial terms.

Section 84

Where an in-house asset contravention arises as a result of a rental deferral (constituting a loan) provided by a Division 13.3A entity to a tenant on commercial terms, causing the fund’s investment in the entity to cease being exempt from the in-house asset rules.

Section 84

Where the fund’s assets exceed the 5% in-house asset threshold as at 30 June 2019 however a plan to dispose of the excess by 30 June 2020 is unable to be executed due to the impacts of COVID-19.

Section 84

Where the fund’s assets exceed the 5% in-house asset threshold as at 30 June 2020 due to the impacts of COVID-19 however a plan to dispose of the excess by the end of 30 June 2021 is unable to be executed because the market has not recovered or it was unnecessary to execute the plan because the market has recovered.

Section 84

Where the fund’s assets exceed the 5% in-house asset threshold as at 30 June 2021 due to the impacts of COVID-19 however a plan to dispose of the excess by the end of 30 June 2022 is unable to be executed because the market has not recovered or it was unnecessary to execute the plan because the market has recovered.

Regulation 6.17

Where a SMSF member provides the trustee with a determination pursuant to regulation 6.19B, however payment of the benefits is not made, or a lesser sum than the amount stipulated in the determination is paid as a result of the member changing their mind.

You will still be required to determine if a modification of your opinion in the IAR is necessary for these contraventions.

Even if a modification is not necessary, because for example you form an opinion that the contravention is not material, you must still notify the trustee of these contraventions. This could be done in the management letter to the trustee.

We also recommend you add to the management letter that the Commissioner of Taxation will not be taking any compliance action against these contraventions for the 2019–20, 2020–21 and 2021–22 financial years.

All other contraventions identified in the fund must be reported to the trustee in the management letter and as per section 129 of the Superannuation Industry (Supervision) Act 1993 (SISA) reported to us in the ACR if the reporting criteria is met.

Signature

Sign and date the report.

For more information on reporting due to the impacts of COVID-19, see Completing the Auditor/actuary contravention report (ACR) (NAT 11239).

Lodging your report

You must give all SMSF trustees a signed and dated copy of this report within 28 days after the trustee has provided you all documents relevant to preparation of this report.

You should keep a signed and dated copy for yourself.

You do not send us a copy of the report.

Lodging an Audit Complete Advice

It is not mandatory for you to report the completion of your audit to us. However, we recommend auditors lodge an Audit Complete Advice (ACA) with us immediately after completing an audit. An ACA can be lodged by using Online services for business.

We use ACAs to confirm that information reported by a SMSF about the audit on the SMSF annual return (SAR) is correct.

When an ACA has been lodged and it matches the details in the SAR, we will exclude this fund from the list we issue to auditors asking them to confirm their SMSF auditor number (SAN) has not been misreported. Lodging an ACA will also help prevent SAN misuse on a real time basis.

Other reporting responsibilities

You must report to us using the Auditor/actuary contravention report (NAT 11239) if you:

  • think the financial position of the fund may be, or may be about to become, unsatisfactory
  • conclude that a contravention of the SISA or SISR specified in the contravention report instructions may have occurred, may be occurring or may occur, and the contravention meets the prescribed reporting criteria.

You may also report anything else you consider will assist us in performing our duties under the SISA and the SISR.

You can lodge the ACR on Online services for business.

Use Completing the Auditor/actuary contravention report instructions to help you complete the report.

More information

For more information about auditing SMSFs or lodging contravention reports, refer to:

Online services for business is the preferred channel for lodging ACRs and ACAs and communicating with us via secure mail. Alternatively, to obtain a paper version of the Auditor/actuary contravention report (NAT 11239) or for more information:

Australian Taxation Office
GPO Box 9990
[insert the name and postcode of your capital city]

For example

Australian Taxation Office
GPO Box 9990
SYDNEY  NSW  2001

If you do not speak English well and need help from us, phone the Translating and Interpreting service (TIS) on 13 14 50.

If you are deaf or have a hearing or speech impairment, phone us through the National Relay Service (NRS) on the numbers listed below, and ask for the ATO number you need:

  • TTY users, phone 13 36 77. For ATO 1800 free-call numbers, phone 1800 555 677.
  • Speak and Listen users, phone 1300 555 727. For ATO 1800 free-call numbers, phone 1800 555 727.

Internet relay users, connect to the NRS at relayservice.com.auExternal Link.

 

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