From 01.07.2021 Accounting Firms Preparing SMSF Financials cannot Do The SMSF Audits -APES 110
- Thou shalt not do “in-house” audits – that is you cannot provide or manage, any of the financial advice, accounting or tax advice for a fund AND then audit that fund …“Chinese walls” don’t cut it anymore!
- Thou shalt not do “in-network” audits – the audit firm must be “truly independent” there cannot be any ownership, management or other commercial relationship between the audit firm and the accounting firm …e.g if you spin off your accounting division, it cannot have any other commercial arrangements with the accounting firm and this would include things like renting space from the accounting firm
- Thou shalt not “swap” audits – The “you audit mine and I’ll audit yours” type of “back-scratching” arrangement creates a conflict …you can’t do audits for someone who audits your clients!
- Thou shalt not do audits for a “recent” employer [The 2-year rule] – If you were to audit work done in the prior year, for an ex-employer, you would be auditing work that you may have had some input into, or influence over, which is a conflict …you need at least a 2-year gap to ensure that you’re not conflicted.
- Thou shalt not be “dependent” on your client [The 50% rule] – If any one accounting firm is providing more that 50% of your “SMSF audit work” then you’re conflicted …you need to decline the work or grow, quickly, to remove the conflict!
We Northcity Accountants Independent SMSF Auditor ( APES110) and will do the Audit for $750+GST for a year.
We will do the Audit with in 5 Days from Receipt of all Documents.
Northcity Accountants -SMSF Auditors www.northcityaccountants.com.au Tel 03 9404 2737