As an SMSF auditor, there are extra audit checks you need to consider when undertaking the final SMSF audit for an SMSF that is winding up. These include checking that:

• any wind-up requirements in the trust deed have been met
• all members agreed in writing to the wind up
• the financial statements correctly account for assets, liabilities, income, expenses and final allocations to and payments from member accounts
• no accrued income or expenses are overdue at the wind-up date apart from estimated tax accruals awaiting the SMSF’s final tax assessment
• asset disposals occurred at market value (based on verifiable evidence provided by the trustees). Market value of collectables disposed of to a related party, including as an in-specie super payment, must be supported by a written valuation from a qualified independent valuer
• benefits were only paid to members who met a condition of release (where the member provided written confirmation to the trustees), to eligible beneficiaries or to the legal personal representative
• benefits were transferred to and received by a complying superannuation fund for members who did not meet a condition of release
• you have written representation from the trustees confirming that any bank transactions occurring after the audit will comply with the super laws. This will apply when trustees leave the fund’s bank account open to accommodate a final tax liability or tax refund which must subsequently be paid or transferred according to the payment standards in the super regulations.

Call your Auditor Julius Mather 03 9404 2737