SMSF Specialist Auditor (SSAud®)

Students are required to successfully complete all components of the program within twelve weeks of entering the course.

To successfully complete the course and earn the accreditation, students will need to pass all course assessments.

Optional learning modules are available as pre-reading for the assessment, to support you in forming a deeper understanding of the course content in preparation for the exam.

No use of AI is permitted for completion of  the multiple-choice Exam. 

Exam

Weighting: 100% | Pass Mark: 50%

• The online examination is 120 minutes in duration and consists of 90 multiple choice questions. No written answers are required.
• The exam is conducted under supervision via an online proctoring system, providing the flexibility to sit the exam at a time and place of your choosing.
• It is open book, limited to course material. Students may not consult other resources (i.e.: use internet search engines).
• One resit is available (included as part of the course) and must be completed within the Study Period. 
• If the exam is failed twice, the student must re-enrol for a subsequent cohort to receive their accreditation. No RPL for other assessments will be recorded in this instance. 

Note: We expect that candidates will be able to pass the exam, provided there has been sufficient attention and engagement to the learning materials, as well as practical SMSF experience in the industry.

The supporting course material offers comprehensive technical content, covering:

1. Being an SMSF Auditor

   To ensure compliance with the rules, the Australian Taxation Office (ATO) as the regulator of SMSFs places reliance on the work of SMSF auditors. It is a legislative requirement that the financial statements of all SMSFs are audited each year. In many respects, the integrity of the SMSF industry relies on the conduct of a quality audit by competent practitioners.

   Approved SMSF auditors are required to be registered with the Australian Securities and Investments Commission (ASIC). The legislation covers the requirements that must be met to enable registration with ASIC, competency standards and independence requirements.

2. Audit Standards

   The module, Being an Auditor examined the compliance framework for the professional and statutory obligations that apply to auditors. This module examines the framework that applies to the conduct of the audit, comprising of Audit and Assurance Engagement Standards, and how it applies to the audit of an SMSF.

   SMSF auditors are required to comply with the relevant audit standards published by the Auditing and Assurance Standards Board (AUASB). The AUASB has published Guidance Statement GS 009 ‘Auditing self-managed superannuation funds’ to assist auditors in meeting their obligations and to comply with the relevant audit standards.

   Other modules discuss in further detail the practical application of the relevant audit standards.

3. Preliminary Engagement Activities

   Prior to the acceptance of any audit engagement, the auditor is required to perform preliminary procedures to assess whether it is appropriate that the audit engagement is accepted. These preliminary activities include the satisfaction of fundamental ethical requirements, quality control procedures and independence assessments. The auditor is required to document the agreed terms of the engagement addressing specific objects in the engagement document.

   Whether the audit is a new engagement or a continuing engagement, the auditor is required to have established acceptance and continuance procedures. This module will examine these vital preliminary audit activities and the engagement process.

4. Planning and Risk – Identification, Assessment and Response

   As part of the audit process, the auditor seeks to reduce the risk of material misstatement to a suitably low level. The identification and assessment of actual or potential risk is therefore a key part of the audit process. A risk assessment will assist the auditor in determining the appropriate audit procedures based on the characteristics of the fund. Some high-risk areas for SMSFs include the risk of fraud, complex transactions, related party transactions and breaches of the SIS Act and SIS Regulations.

   When it comes to audit evidence, there are several risk considerations in relation to its source, nature and circumstances under which it is obtained. For example, should the audit procedures differ where financial reporting processes are provided by SMSF software companies using data feeds? The assessment and consideration of risk facilitates the auditor’s design, documentation and implementation of the audit plan.

   The materiality level set by the auditor will impact the risk of material misstatement. Materiality relies on the auditor exercising their professional judgement rather than the use of a prescriptive method of calculation. The auditor must use their skill, expertise, and experience to assess the information and documentation. The application of these audit procedures establishes the foundation for the audit and the nature and extent of the audit activities to be undertaken by the auditor.

5. Conducting the Audit – Part A

   Under section 35B(1) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), self-managed superannuation fund (SMSF) trustees are required to ensure that a statement of financial position and an operating statement is prepared for each financial year. Section 35C of the SIS Act requires that those financial statements are audited by an approved SMSF auditor.

   This module examines the processes and procedures required in undertaking the audit of the financial statements. This is Part A of the Australian Taxation Office (ATO) prescribed audit report — Self-managed superannuation fund independent auditor’s report (2-15).

   The previous modules have laid the foundation, covering the audit framework, preliminary audit procedures, and the preparation of the audit plan which is essential for conducting the audit.

   This module looks at the practical application of these areas with regards to Part A of the SMSF audit.

6. Conducting the Audit – Part B (Administration)

   The SMSF auditor must form an opinion on an SMSFs compliance with prescribed requirements of the Superannuation Industry (Supervision) Act 1993 (SIS Act) and Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations). This comprises Part B of the audit report. This part of the engagement is generally referred to as ‘the compliance audit’.

   SMSF trustees must comply with legislative obligations in the SIS Act and SIS Regulations relating to the fund’s operation and administration. There are many such obligations. For this reason, SMSFs are not for the faint-hearted or careless. The SMSF auditor is a vital cog in this compliance landscape. As a regulator, the ATO prescribes a list of specific sections and regulations against which the auditor must evaluate and report on fund compliance. The regulator’s guidance is a minimum standard. The auditor may include other sections or regulations as suitable criteria in the compliance engagement.

   The full list of reportable provisions is set out in QC45566. If an SMSF is found to be non-compliant, the trustees may be liable for fines and administrative penalties. In the worst contingency, the SMSF may lose its complying status and the significant benefits that complying funds enjoy, in addition to attracting some very nasty tax consequences. But more on this later.

   In this module, the compliance audit has been categorised into four topics:

   • Introduction to the compliance audit. 
   • SMSF administration  
   • SMSF structural rules 
   • Member accounts   

7. Conducting the Audit – Part B (Investments)

   The SMSF auditor must form an opinion on the SMSF’s compliance with prescribed requirements of the Superannuation Industry (Supervision) Act 1993 (SIS Act) and Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations). This comprises Part B of the audit report and is generally referred to as ‘the compliance audit’.

   SMSF trustees are required to comply with legislative obligations in the SIS Act and SIS Regulations that relate to the fund’s operation and administration. Trustees have many compliance obligations. For this reason, SMSFs are not for the faint-hearted or careless. The SMSF auditor is a vital cog in the SMSF compliance landscape. As a regulator, the ATO prescribes a list of specific sections and regulations against which the auditor must evaluate and report on fund compliance. The regulator’s guidance is a minimum standard. The auditor may include other sections or regulations as suitable criteria in the compliance engagement.

   The full list of reportable provisions is set out in QC45566. If an SMSF is found to be non-compliant, the trustees may be liable for fines and administrative penalties. In the worst contingency, the SMSF may lose its complying status and the significant benefits that complying funds enjoy, in addition to attracting some very nasty tax consequences. But more on this later.

   In this module, we continue our examination of the compliance audit with a focus on the investment rules.

   We also examine the compliance requirements for the preparation of an SMSF’s investment strategy and the implications this requirement has for the auditor.

8. Audit Reporting

   The final part of the audit process is to form an audit opinion and prepare the audit report. The results of the audit are then communicated. Reporting in connection with the SMSF audit involves several dimensions and various parties.

   These reporting obligations must be understood to ensure that auditors meet their professional obligations, discharge their duty to the regulator, and equip trustees with a timely and informative report. Penalties apply under the SIS Act for non-compliance with the auditor reporting requirements. This topic looks at the practical application of these areas with regards to Part A and Part B of the SMSF audit.

One (1) extension only is permitted per student enrolment. 

Students seeking an extension must apply to the SMSF Association at least 1 week prior to the end date of their course, to receive an extension of a further 12 weeks, for an extension fee of $220.

No further extensions beyond this will be offered, and students will need to re-enrol if they wish to complete the course at this point.

No refunds will be offered for enrolments, except in exceptional circumstances, once registered into the course. 

The SSAud^® designation is recognised as an approved program under the SMSF Auditor regulations (SIS 9A.01). This means, when held in conjunction with an accounting degree, diploma or certificate from a prescribed university or institution, the SSAud^® designation will satisfy ASIC’s education requirements to be registered as an approved SMSF auditor. 

Note: Holding the SSAud^® designation does not itself confer registration as an approved SMSF auditor. To be registered as an approved SMSF auditor, in addition to meeting the prescribed education requirements, you must meet other requirements which include being an Australian resident, passing a competency examination, and having the required levels of practical experience.

You are also required to comply with ongoing statutory obligations such as lodging an annual statement, completing the prescribed ongoing professional development and holding the prescribed professional indemnity insurance.

The SMSF Association Standards of Professional Conduct for SMSF Specialist Auditors apply to all SMSF Specialist Auditors. As the ‘gatekeeper’ between the SMSF trustee and the Regulator it is imperative the SMSF Specialist Auditor™ performs their duties to best practice standards to continue building the integrity of the SMSF industry.

Prior to registering for the SMSF Specialist Auditor™ program you should review the following documents:

• SMSF Specialist Auditor™ Program Rules & Conditions
• SMSF Association Standards of Professional Conduct for SMSF Specialist Auditor™