SMSF or the self managed superannuation funds are regulated and governed by the office of Australian Taxation. The reason why the superannuation funds were created is because of a single goal. It is to be able to acquire and make investments for the lifelong contributions that can be available for use when a person reaches retirement age. This type of funds is not like any other funds. It is because it enables the contributor to become a trustee. He or she also has the control on the contributions of the investment. In addition, the members of the SMSF have a major role in order for the goals to be achieved.
An advantage of having self managed superannuation funds is for the beneficiary or the trustee who is able to have any other investments he or she would like to have. Considering the fact that SMSF are able to purchase property as well as various classes of asset, SMSF audit became a necessity.
It is right that the funds can be used for any other investments. It is provided that it will not infringe any of its rules. It is essential that the trustee is aware of the responsibilities of his role as a trustee and as a beneficiary. The office of Australian Tax is requiring that independent and licensed SMSF auditor should do the auditing.
In order to prevent any possible fines and fees by the tax office, it is important that the self managed superannuation funds trustees understands all the taxation and legal obligations. One of the said obligations is to be able to a yearly submission of all the funds for the audit of SMSF. The entire audits complexity and the financial audit with the rules must be included in the audit of the self managed superannuation funds. Because of the audit complexity, hiring an accountant plays a vital role to assist in the required documentation preparation. By doing such, it can be ensured that the trustees will be guided accordingly so as for the funds to adhere to the rules.
Only authorized and licensed SMSF auditors are allowed to conduct the process of auditing. The reputed auditors have got the capability to perform solid audit to be able to address any sort of potential problems. Moreover, issues of independence can be eliminated when selecting the SMSF audit company. Simultaneously, it can enhance the services of the self managed superannuation funds. Aside from that, by means of the SMSF audit, the entity can be determined as adhering or not. This also implies that the audit can help the trustees to follow the rules as well as protects the SMSF to prevent having any investments that are bad.
It is very important that all records are intact because the trustees of the self managed superannuation funds are obligated to go through audit of the SMSF. Right after the auditing is done, the report must be submitted immediately to the Australian Taxation Office. It is advisable and a smart move to hire professionals when in case all the trustees are not fully equipped on how to handle administrative tasks.