SMSF Audit Preparation and Coordination
Every self-managed super fund must have an annual financial and compliance audit completed by an approved SMSF auditor before the fund lodges its SMSF annual return. SMSF audit coordination is the work of getting the fund records, financial statements and supporting evidence ready, responding to audit queries and keeping the accounting, audit and lodgement process moving in the right order.
Service at a Glance
Personalized scope & lodgementAnnual financial and SISA compliance audit required for all registered SMSFs
Auditor must be appointed at least 45 days before the SAR lodgement due date
Conducted independently by an ASIC-approved auditor; accountant cannot audit own file
7 verified schedules covering bank reconciliations, valuations, and member records
Audit report must be completed and signed prior to lodging the SMSF annual return
Direct liaison with independent auditor to clarify accounting schedules and evidence
- Pre-lodgement draft walkthrough & written client sign-off
- Extended ATO tax agent lodgement deadlines available
- Transparent upfront quoting & zero lodgement without approval
What does an SMSF audit cover?
An SMSF annual audit has two parts. The auditor reviews the fund's financial statements and also checks compliance with relevant superannuation law. This means the audit is not simply a check that the bank balance agrees to the accounts. The auditor may need evidence supporting investments, contributions, pensions, related-party dealings, ownership of assets, valuations and trustee decisions.
The trustees remain responsible for operating the fund correctly and for providing the information the auditor needs. The auditor's role is independent assurance. Financially Up's role in SMSF audit preparation is to help ensure the accounting file and supporting records are organized, consistent and ready for that independent review.
Part A: Financial Statements Audit
Independent examination confirming that the fund's operating statement and statement of financial position present a true and fair view:
- Verification of cash, bank ledgers, broker accounts, and term deposits
- Objective market valuation support for real estate, shares, and unlisted holdings
- Reconciliation of member accumulation equity and pension drawdowns
Part B: SISA & SISR Regulatory Compliance Audit
Rigorous testing confirming adherence to superannuation legislation and operating standards:
- Sole purpose test compliance and strict prohibition on member financial assistance
- In-house asset 5% market value limits and arm's-length dealing standards
- Asset separation from personal property and correct legal title documentation
When should the SMSF auditor be appointed?
The ATO requires trustees to appoint an approved SMSF auditor no later than 45 days before the SMSF annual return is due to be lodged. The audit must be completed before the annual return is lodged. Starting the process earlier can reduce pressure where records are incomplete, valuations are needed or the auditor identifies questions that require trustee input.
What is included in SMSF audit preparation?
The exact file depends on the fund, but SMSF audit preparation commonly involves finalizing the annual accounts and assembling records that allow the auditor to verify the fund’s financial position and compliance history.
Bank statements and cash reconciliations for the year
Full 12-month statements for all transactional bank accounts and cash management funds reconciled to 30 June.
Investment statements, contract notes, dividend and distribution records
Platform annual tax statements, broker transaction summaries, contract notes, and franking credit documentation.
Evidence of property ownership, rental activity and year-end market values where relevant
Certificates of title, commercial/residential leases, rental statements, council rates, and objective valuation evidence.
Member contribution and rollover records, pension payment information and member balances
Employer SG confirmations, contribution notices (s290-170), SuperStream rollover statements, and pension commencement documents.
Trustee minutes, resolutions and investment-strategy records relevant to the year
Written investment strategy, minutes reviewing diversification, liquidity and insurance, plus major transaction approvals.
Loan agreements, LRBA records or related-party documentation where the fund has those arrangements
Bare trust deeds, executed loan agreements, amortization schedules, and arm's-length benchmarking records.
Prior-year financial statements, audit reports and evidence that earlier issues have been addressed
Opening trial balances, preceding annual tax returns, auditor management letters, and proof of rectified prior matters.
How Financially Up coordinates the SMSF annual audit
A practical SMSF audit service starts before the auditor receives the file. We review the accounting records for obvious gaps, prepare the annual financial statements and supporting work papers, then provide the agreed audit package to the independent auditor. Where the auditor raises queries, we help locate accounting evidence, explain transactions within our scope and work with the trustees to obtain missing records.
If an issue is more than a documentation question - for example, a possible breach of the super rules, a disputed legal arrangement or a matter requiring regulated financial product advice - we identify that distinction early. The trustee may need separate legal or appropriately authorized financial advice depending on the issue.
Pre-Audit File Health Check
We review the accounting records for obvious gaps, unreconciled transactions, or missing statements before the auditor receives the file.
Workpaper Pack Compilation
Preparing annual financial statements, trial balances, member statements, and comprehensive supporting schedules in a standardized digital pack.
Direct Query Management
Where the auditor raises queries, we help locate accounting evidence, explain transactions within our scope and work with the trustees to obtain missing records.
Statutory Boundary Delineation
If an issue is more than a documentation question-such as a potential rule breach or legal dispute-we identify that distinction early for specialist legal/financial input.
Strict Independence Requirement: Financially Up prepares the accounts and coordinates the audit process. The statutory financial and compliance audit must be carried out independently by an ASIC-approved SMSF auditor who satisfies APES 110 independence standards.
Common causes of SMSF audit delays
Keeping the fund records current during the year usually makes the audit process more efficient. Proactively addressing these common delay triggers ensures audit clearance without pressure:
Incomplete bank statement histories, missing platform annual tax reports, or unobtained lease contracts.
Real estate titles, share holdings, or bank accounts registered in trustee personal names without super fund designation.
Property, unlisted shares, or private unit trusts lacking verifiable market value documentation at 30 June.
Unclassified bank movements or personal drawings raising potential financial assistance or borrowing concerns.
Failure to satisfy minimum statutory pension drawdown limits or unreconciled personal contribution notices.
Rushing year-end preparation without leaving the mandatory 45-day window for thorough independent examination.
What happens if the auditor identifies an issue?
An audit query does not automatically mean the fund has committed a reportable breach. Sometimes the auditor simply needs more evidence. Where a contravention is identified, however, the auditor has statutory reporting responsibilities and may need to report it to the ATO if the relevant criteria are met. Trustees should address audit findings promptly rather than ignoring them until the next year.
Why choose Financially Up for SMSF audit coordination?
Financially Up is a registered tax agent with more than 10 years of experience across accounting, taxation and business advisory services. Our team includes CPA and IPA members, and we support clients Australia-wide through online and in-person appointments. For SMSF audit coordination, the focus is on accurate accounting records, organized evidence and clear communication with the independent auditor.
Registered Tax Agent
Financially Up Pty Ltd is a registered tax agent (TPB #26242127) with more than 10 years of experience across accounting, taxation and business advisory services.
CPA & IPA Members
Our qualified specialists hold memberships with CPA Australia and the Institute of Public Accountants (IPA), ensuring rigorous professional accounting workpapers.
Australia-Wide Support
We support self-managed super fund trustees Australia-wide through online calendar appointments as well as in-person consultations.
Frequently asked questions
Common questions about independent audit requirements, return lodgement sequences, appointment timeframes, and overdue prior audits.
No. Under this service, Financially Up prepares the accounts and coordinates the audit process. The statutory audit is completed by an approved SMSF auditor who satisfies the applicable independence requirements.