The Part B compliance audit requires an in-depth knowledge of investment rules contained in the Superannuation Industry (Supervision) Act 1993 and supporting regulations. The SMSF auditor must not only be familiar with the rules but must also remain alert to warning signs that something has gone wrong. The auditor must implement robust procedures that support their compliance audit opinion.
The Module covers the usual suspects, including the requirement for market valuations, arm’s length dealing, in-house assets rules, prohibition against financial assistance, and the borrowing provisions. The sole purpose test and investment strategy are also explored from the auditor’s viewpoint, as is the compliance standard for derivative investment and the debated application of SIS Regulation 4.09A.
At each point, the Module unpacks both the investment rules and the auditor’s obligations in navigating this terrain.
On completing this module, you should be able to:
- explain and apply the audit objectives that apply to the compliance audit (Part B) with respect to the investments audit and requirement to prepare an investment strategy.
- 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).
SMSF Audit - Conducting the audit - Part B (Investments)