HOW DOES OUR ACCOUNTING FIRM TRANSITION TO WORKING WITH A NEW, INDEPENDENT SMSF AUDITOR?

Independence is the key underpinning principle of any audit or review. The new guidance statement issued in May 2020 provides clear advice around how and who can conduct the audit of SMSFs.

With accounting practices no longer being able to conduct audits for the SMSF’s, where they have prepared the financial statements accounts for the fund, an important decision needs to be made on who will conduct these audits.

The process for accounting firms partnering with an independent auditor: Our example

In supporting accountants and their clients in their SMSF audit needs, our practice uses the Caseware SMSF Audit platform to conduct all our SMSF audits. This software links to Class Super Fund, BGL Simple Fund 360, and SuperMate, allowing us to efficiently streamline the import of data from an accounting platform into ours.

Caseware SMSF has a dedicated query function that enables the auditor to request for any required information from the accountant as needed. This provides all parties with an efficient platform to track and respond to outstanding queries on any job in progress.

What to expect working with an audit partner

You should expect your audit partner to work closely with your accounting practice to determine the most practical way to undertake your clients’ audits.

In your enquiries, look for a firm with experience aligned with your clients’ backgrounds as well as with your experience and values. For example, is it important to you to work with a partner whose team is local? How timely and clear are their communications with you? Do they exhibit client care as a central value, when describing their work?

Steps to onboarding a new audit partner

We recommend some general steps to solidifying a strong working relationship with an audit partner:

1. The initial conversation determines an alignment in values and client types.

2. Work together to set up a plan and determine scope of work.

3. Ensure expectations are clear from both ends, and have your questions answered early.

4. Prioritise with your team completing any digital onboarding requirements.

5. Communicate the change to your clients, including informing them why you’ve chosen this particular audit partner to work with you.
   

With the 30th of June just around the corner, have you discussed your audit needs with an independent provider?

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