This guide has been designed for Auditors to gain familiarity with Class, learn to navigate the system and access the information required to conduct their SMSF audit.
External auditors can be set up with read-only access to both Class and Client View. An Access Controller can set up access for the auditor to either the whole business, brand or selected funds. Access Controllers can refer to Setting up a default auditor for further instructions on how to set up an Auditor in Class.
If you have been assigned auditor access to multiple Businesses, you will need to select the relevant business from the Business Console before you can proceed. Here you will be able to see the list of Funds where you have been assigned as the auditor. Search for the fund by name or code, click to select. Take some time to familiarise yourself with the Business Console and Menu Structure, refer to Navigating Class for more information.
Once a fund has been selected, you will be presented with the Fund Dashboard. The dashboard gives you a current snapshot of the fund and provides a good starting point to familiarise yourself with the super fund. The following dashboard widgets may be helpful during the planning phase of the audit:
Reports and Report Packages
Class provides an extensive list of reports to assist you during the audit process. Auditors have the ability to run these reports at a fund level by navigating to Reports > Run a report. These reports can also be bundled into Report Packages which gives you the ability to run various reports in bulk for one or more funds.
A sample 'Audit Report Pack' is available for you to look at both from a Business level, Reports > Maintain report packages, or at a Fund level from Reports > Run a report package. For more information please refer to our Reports Overview.
The auditor role does not have permission to report packs. If you are an external auditor you will need to work with the Administrator/Accountant to create report packages you require.
When setting up report packages you should take into consideration the different types of super funds you will audit as reports that are applicable to a pension fund may not be applicable to an accumulation fund and vice versa. It is common to have multiple report packs set up each with a different collection of reports. Please refer to our Reports Catalogue for a full list of reports available in Class.
Useful Reports for an 'Audit Report Pack'
While there is no specific formula for the perfect Audit Pack you should select reports that compliment your audit procedures. The reports listed below may help improve some of these procedures, cutting down on time and effort spent performing the audit:
- Audit Planning Memo - Provides a summarised planning memo where the user can set the materiality limits that were used for both the Current Year and Previous Year.
- Audit Engagement Letter - Generates an Engagement Letter including expected Audit Fee, and the auditors responsibilities.
- Audit Representation Letter - Produces a letter from the Trustees of the fund to the Auditor for client representation.
- Audit Report - SMSF - A generic audit report which satisfies regulatory requirements applicable to Self Managed Superannuation Funds.
- Fund Details Report - details of the fund such as trust deed information, fund start date, dates of any amendments, deed provider, etc.
- Audit Workpapers - provides comprehensive lead schedules offering a review of your financial statements and individual account balances. The report also provides a comparison of financial information with a prior period as well as a $ and % change to assist with analytical review of the fund.
- Cash Reconciliation - useful in tracing specific cash transactions and where they have ended up in the financial statements. It also provides a matching summary for all cash transactions during the financial year.
- General Ledger Audit Trail Report - provides you with a list of every transaction that was entered, modified or deleted in a fund. The report also shows the username and date/time the transactions were entered/modified.
- Asset Strategy Comparison - Auditors can take advantage of market data provided to us by ASX and IRESS FundData particularly when reviewing the fund's investment strategy. The report compares actual holdings in different asset classes against a selected asset strategy. Up to date information on ASX listed investments and managed funds with an APIR code with the combination of broker and wrap data feeds gives auditors the ability to review the investment strategy at any point in time.
- Investment Income Comparison Report - compares the income events processed in a fund to the expected income amount based on unit holding and announcement data. The report is particularly helpful when you have a broker feed active as the expected income is calculated using the unit holding confirmed by the Broker on the ex-date. Variances are highlighted to you on the report making it easy to identify possible misstatements.
- Investment Revaluation Report - shows the last revaluation date, price and market value for all investments held during the year. As SIS requires all investments on a balance sheet at year end to be recorded at market value, this report helps identify investments that have not been revalued at balance date.
- Market Price Audit Report - shows exceptions where market prices have been manually updated by the administrator from the publically available market data.
Directly Connected Data Feeds
Class receives electronic data feeds directly from 220 banks, Stockbrokers and wraps as well as foreign markets, currencies and employer contributions. The feeds are received without manual intervention.
These connections allow data to be automatically loaded directly from banks, brokers and wrap accounts into Class. It is easy to see the value of data feeds from an administrator's point of view, but how does it help you as an auditor?
A cash feed usually consists of daily transactions as well as a balance update which will help you reconcile ledger balances to a feed balance. Data feeds help evaluate the existence and completeness assertions on cash account balances.
Directly connected broker feeds consist of daily reconciliation and confirmation of quantities. Most broker feeds also allow automated processing of income entitlements where the broker has provided Class with CHESS adjustments/confirmations. CHESS adjustments on these broker feeds will also highlight any in-specie transfer of shares on the broking account making it easier to identify misstatements on the balance sheet and operating statement.
Wrap feeds will provide daily reconciliation, confirmation of quantities, and tax statements for selected wraps. Broker and wrap feeds help you, as an auditor, better evaluate assertions on investment balances and income transactions.
Class can also provide auditors with ASAE 3402 Type I and Type II Assurance Reports upon request. These reports assure controls are in place within the Class Data Feed system managing security, integrity and availability of data.
Automated Valuations and Income Announcements
Class receives daily prices for ASX listed securities and Managed Funds with an APIR code providing an accurate valuation of the fund's portfolio at year-end. Class will also automatically generate income, using announcement data from the ASX and other financial markets. This information is cross-matched to the fund data feeds to reconcile the announcement to the income received. Income, franking credits and withholding tax are automatically processed, based on the information received from these sources.
Most auditors will design their audit procedures around testing these prices and income announcements at a business/community level in order to place reliance on the amounts reported on the balance sheet and operating statement. This saves a significant amount of time for auditors as substantive procedures don't need to be performed at a fund level where automated valuations and income announcements are available.
Automated valuations for residential properties available through Class enable auditors to determine if the value of their clients’ property adheres with the ATO’s Valuation Guidelines for SMSFs.
Independent automated valuations (AVMs) can be accessed directly from the Class Property Console. You can view, order, track and store all valuations, with a full audit trail of any adjustments made to the valuation figures. The service is delivered using data from CoreLogic RP Data, a leading provider of property data and analytics.
The following screens on Class are useful when gathering information or conducting audit procedures to identify possible misstatements:
- At a Fund level Transactions > Browse Events - allows you to group and sort events processed during the year. As an auditor, you may be interested to see how the events originated, whether they were processed by a data feed, user or system originated. If you choose to rely on the data feeds and system originated events then you only need to test user created events for possible misstatements
- Transactions > View Transactions Rules - will allow you to view and check existing transaction rules.
- Investments > Browse Holding Accounts - where a data feed is available this screen is particularly helpful in identifying incorrect unit holdings in your investment register. A unit holding marked Green means the unit holding recorded in our ledger matches the unit holding confirmed by the feed provider. Unit holdings marked in Red require further investigation and usually suggests an incorrect unit holding in our ledger:
- Investments > Balance Reconciliation - allows you to drill down and find any variances between your ledger and feed balances.
- Investments > Property Console - allows you to monitor revaluations on properties throughout the year.
At a Business level Investments > Browse securities - provides access to information on securities maintained by Class as well as user created securities. You can search and drill down into a security to view and check the issue price recorded on a certain date. Here you can also check the asset allocation and income announcement data. You can also find out which funds are currently holding this investment from the Holdings tab.
- Class maintains securities are identified with a Community scope. Learn more about this here
- Investments > Corporate Actions Console - here auditors can check the underlying rules behind corporate actions being processed on the funds being audited. Auditors can design their substantive procedures to spot check these rules instead of testing the actual events . This saves time and effort, and ensures that the corporate action events don't pose a major risk to account balances.
Audit / Audit Workpaper Integration
- Audit Partners - Class integrates with several audit partners to provide automation to the SMSF audit process. The process of importing trial balances and syncing client information is seamless and can be achieved with a click of a button allowing you to cut down on audit administrative procedures and automate the audit process. Current audit software partners are listed here.
- Web Services / APIs for integration - Class can also provide web services and API integrations to your own bespoke audit systems. Using web services you can seamlessly import a trial balance and fund information to an Excel spreadsheet to generate your own set of workpapers or automate data entry to a custom built software solution. Please contact email@example.com if you would like to find out more about API access.
- One-Click Audit - Class' innovation, allows administrators to submit an audit request to an integrated audit partner via Class Super. The integration allows a request to be instantly submitted to the audit partner’s system, flagging the fund as being ready for audit. Audit partners are then able to provide real time updates to Class on the audit’s status and push through documentation and associated details on audit completion.