The Part B compliance audit requires consideration of several compliance matters, including:
- Fund structural and residency requirements
- Contributions and benefit payments
In completing this part of the engagement, the SMSF auditor needs a thorough understanding of both superannuation and income tax legislation and supporting regulations.
What is a contribution? When can a contribution be accepted by the SMSF? What are the auditor’s obligations in relation to excess contributions or age-related restrictions? What are the audit requirements in regard to pensions, death benefits, and member insurance?
This Module takes a deep dive into these questions. It explores audit requirements involving contributions and the withdrawal of superannuation benefits, both during a member’s life and after death. It also explores the compliance audit considerations relating to trustee administrative obligations, SMSF structure, and residency.
On completing this module, you should be able to:
- explain and apply the audit objectives that apply to the compliance audit (Part B) in respect of the trustee obligations and the SMSF definition
- identify the key components and source of the compliance audit the auditor is required to consider when conducting the audit
- explain the audit evidence and audit procedures applicable to the compliance audit
- practical application of the audit framework and audit standards in conducting an audit of the compliance audit (Part B).