Welcome & Introduction

Peter Burgess, CEO, SMSF Association

Session 1: Common SMSF Audit Misconceptions: Real Stories, Real Solutions

Marjon Muizer, Managing Director, Red Willow Super

This engaging session tackles the frequent misconceptions faced by SMSF auditors, a crucial topic with significant practical implications. The objective is to empower auditors with actionable knowledge that transcends theoretical concepts, enabling them to proficiently navigate the complex realms of compliance, audit standards, and accounting principles.

Marjon will draw from her extensive personal experience to highlight common errors and misunderstandings that auditors frequently encounter. Key issues to be covered include immaterial repeat breaches, in-house asset breaches, reliance on data feeds, misreporting of S109 breaches, and the intricacies of lodging an Auditor Contravention Report (ACR) for ongoing compliance breaches.

Participants will gain invaluable insights into the root causes of these errors and learn strategies to avoid them, ensuring they can perform their roles with greater effectiveness and confidence.

Session 2: From Confusion to Clarity: Asset Titles in SMSF Audits

Shelley Banton, Head of Technical, ASF Audits

Proper title holding of SMSF assets is essential for compliance and protecting the interests of fund members. In this session, Shelley will guide you through the complex legal requirements and best practices for ensuring SMSF assets are held in the correct title. You will gain an in-depth understanding of potential pitfalls and common errors, equipping you with the knowledge to verify and rectify title issues effectively. By mastering these critical aspects, you can ensure the integrity and compliance of your SMSF clients.

Session 3: Audit Challenges: Tacking Related Party Transactions in SMSFs

Con Gotsis, Director, Guardian Assurance

Related party transactions represent a significant risk to auditors due to the complexity of their nature and unfortunately a desire by some related parties to circumvent investment rules to benefit themselves. Con will share his in-depth knowledge on the issues that present themselves with related party transactions and determine the types of audit evidence required to form an opinion on SMSF compliance.

Areas covered will include:
• Loan or Financial Assistance to Members
• Related party acquisitions
• Leading business real property
• In-house asset rules and exemptions
• Non-arm's length income and expenditure
• Related party LRBA's

Participants will gain a comprehensive understanding of these areas, enhancing their ability to navigate and audit related party transactions effectively.

Session 4: Essential Audit Work for Death Benefits

Shirley Schaefer, Director, BDO Audit Pty Ltd

Auditing SMSF death benefits can be challenging due to its complexity and infrequency. Shirley will share her expertise as she covers the essential audit areas, highlight common pitfalls, and what constitutes sufficient appropriate audit evidence to ensure complete audit files.

Participants will gain practical insights and receive a detailed checklist to support their audit processes, enhancing their expertise and ensuring compliance in SMSF death benefits audits.

Session 5: Div 296 and Beyond: The Future of SMSF Auditing

Jacob Kewley, Director, Tactical Super

A rising tide floats all ships that are seaworthy. This session offers an SMSF auditor's perspective on navigating the future, focusing on Division 296 changes and the anticipated regulatory scrutiny on high-balance funds. Jacob will discuss preparing for the 1 July 2025 changes by identifying high-balance members, ensuring accurate valuations, and being vigilant against fraud risks, such as undervaluing and under-disclosing assets.

The session will highlight the importance of accurately calculating carried forward losses, managing release authorities, and understanding investment strategy implications. Jacob will also cover the impact on SMSFs in the pension phase, including meeting pension payments, compliant super balance reductions, and liquidity considerations.

Looking ahead at the SMSF Auditor profession, Jacob will highlight the benefits of specialised knowledge as trustee investment behaviour grows more complex. With a decreasing auditor population and the rise of real-time reporting and data matching, prudent client selection, reliable documentation, and new skills for emerging asset types will be crucial. Upskilling and risk management will be essential to ensure audit firms remains seaworthy in this evolving environment.

Session 6: Facing the Regulators: Proven Tips and Traps for SMSF Auditors

Bryce Figot, Special Counsel, DBA Lawyers

Join Bryce Figot of DBA Lawyers as he shares his extensive experience advising and representing SMSF auditors during ATO and ASIC audits. This session will delve into the critical importance of satisfying ATO inquiries thoroughly and promptly to avoid referrals to ASIC, which can result in severe consequences such as disqualification, suspension, or imposed conditions on registration.

Bryce will offer invaluable practical tips and highlight common traps, both intuitive and less obvious, that ALL SMSF auditors should be aware of, such as:
• What SMSF auditors should be doing NOW … long before any ATO audit
• What prompt action you should take when first alerted to an ATO review or audit of your audit files
• Key issues and ATO interpretation of the law
• Most common areas where auditors come ‘unstuck’
• Much more…

With this knowledge, SMSF auditors will be better equipped to handle ATO reviews and audits efficiently and effectively, ensuring compliance and safeguarding their professional standing.

Closing notes

Scott Hay-Bartlem, Partner, Cooper Grace Ward