Background
ATO has released a new version of the SMSF independent auditor’s report (IAR) (NAT 11466). The changes bring the SMSF IAR in line with the equivalent form prepared by auditors of APRA funds.
Recent changes to the IAR include:
- additional wording added to make it clearer how auditors can make a modification to the audit report where a qualified or adverse opinion is required. The modification wording for a Disclaimer of opinion is in a footnote to the report
- reordering of paragraphs in Part B, Compliance Engagement. The paragraph which refers to the sections of the Superannuation Industry (Supervision ) Act 1993 (SISA) and regulations of the Superannuation Industry (Supervision) Regulations 1994 (SISR) that require compliance assurance (now called the ‘listed provisions’) has been moved under the opinion clause
- clearly articulating the auditor’s responsibilities so they are more consistent with the auditing standards
- updating the form to refer to the most recent version of the APES110 Code of Ethics for Professional Accountants which now includes the independence standards. This was issued in November 2018 and commenced on 1 January 2020. All auditors should be complying with this version of the code when conducting the annual SMSF audit.
- None of the sections or regulations listed at Appendix 1 of the report requiring compliance assurance have been changed.
The new SMSF IAR template is now available in Class. Auditors must use the new form for reporting periods starting on or after 1 July 2019. This article explains how you can update the "Emphasis of Matter - Basis Of Accounting" notes of the SMSF IAR, for example, should you wish to draw attention to the potential impact of Subsequent Event COVID – 19 (Coronavirus) pandemic.
Resolution
Navigate to Business Level > Reports > Maintain Report Packages
- Search and select the report package that contains the IAR.
- Click on Reports
- Select Audit Report - SMSF
- Click on "Edit Note Contents..." for Emphasis of Matter - Basis Of Accounting section
- Insert the required text.
Note that editing this section will override the report defaults. To revert back to the defaults, click the Clear button.
- Click OK.
- Click Save
You can also add content for this "Emphasis of Matter - Basis Of Accounting" notes of the SMSF Audit Report on a fund by fund basis.
Navigate to Fund Level > Reports > Run Report
- Select Audit Report - SMSF
- Select Emphasis of Matter - Basis Of Accounting
- Click on Edit Note Contents
- Enter the text
- Click OK