Self-managed superannuation fund (SMSF) trustees should begin to look at the audit of their funds as more than just a part of the required compliance measures, according to the head of super of a professional accounting body.
"For a lot of trustees the audit is simply a compliance issue. They don't understand there is actually great value that can be achieved from finding a good auditor," Institute of Chartered Accountants in Australia head of superannuation Liz Westover said.
Auditors can actually assist in the proper running of the fund, so if an SMSF is experiencing compliance issues the auditor can help rectify the situation, she said.
"It's about identifying issues that not necessarily are there yet but may become a problem later," Westover said.
In particular, working with an auditor in the event of a breach serious enough to have a contravention report lodged can be of significant benefit to the SMSF.
"If a contravention has been reported to the Australian Taxation Office (ATO), if the trustee has already taken action to rectify it, it is far less likely for the ATO to undertake compliance action," Westover said.
In some cases this can help avoid the possibility of having the SMSF declared non-complying by the ATO, which will save the trustees a lot of inconvenience and the significant associated costs, she said.
"If the ATO is aware a trustee has inadvertently beached the rules, the auditor can identify the issues and put plans in place to rectify the situation. That information is passed on to the ATO and as a result the ATO will look far more favourably upon the breaches."
