How do I update the Subsequent Events section of the Audit Representation Letter regarding COVID-19?
Navigate to Fund Level > Reports > Run Report
- Search and select "Audit Representation Letter"
- Select RTF / Word for Output Format
- Select the Financial Year 2018-19
- Click Run
- Manually update the relevant note section with the following text (You may adjust the wording to suit your practice):
Options Content A - Concise The trustees are aware of circumstances that have arisen after the reporting date, particularly the global stock market volatility surrounding the Coronavirus (COVID-19) pandemic. It is expected that this will cause a material decline in the market value of fund investments that are exposed to these market conditions. However, due to the rapid and ongoing changes, an estimate of the extent of this decline cannot be ascertained. B - Detailed
Subsequent to the end of the financial year there have been considerable economic impacts in Australia and globally arising from the Coronavirus (COVID-19) pandemic, and Government actions to reduce the spread of the virus.
At the date of signing the financial statements the Trustees are unable to determine what financial effects the outbreak of the virus could have on the fund in the coming financial period.
No financial effects arising from the economic impacts of the virus have been included in the financial statements for the year ended 30 June 2019. The impacts may include a significant reduction in the carrying value of the SMSF assets and investments. The Trustees acknowledge their responsibility to continuously monitor the situation and evaluate this impact including whether the fund remains a going concern and its ability to pay its liabilities and future retirement benefits.
Updating the Subsequent Events section of the Audit Representation Letter is currently unavailable at Business Level > Report Pack.