Response

Audit evidence is an important element of the audit review process.

Documents are requested to verify:

• Assets:

  • are owned by the fund or held in trust for the benefit of the fund

  • valuations in the financial reports reflect current market valuation

  • Income from assets are received by the fund

• Borrowings:

  • held match the rules included in the fund’s Trust Deed

  • are maintained as required to meet all current SISA and SISR

  • reflected correctly in the financial statements

• Members Benefits:

  • are recorded in the accounts

  • payments of members benefits have met SISA, SISR and Trust Deed rules

It is common for funds to invest in property. Where the fund owns the property directly or via a related Unit Trust/Company structure, documentation requested will usually include the current title extract, lease agreement, the rationale for current market valuation, and confirmation of insurance.

Bank statements are requested to verify the end-of-year balance.

It is expected most trustees use a computerised system to record and report for the fund. These almost always include the use of bank and other direct data feeds however the use of data feeds does not remove the need for independent audit evidence.

Please read your Management Letter.

Each audit report is accompanied with a management letter. Auditors use this letter to communicate valuable and important information which is specific to your fund and your role as trustees.

Generally, the management letter is short however when an auditor is prompted to write a detailed letter it indicates the auditor has identified potential problems if the current trustee behaviours continue unchanged.

The audit report is signed and completed after all relevant signed documentation and evidence have been reviewed.

Where it is deemed material to include matters in the audit report it is expected the trustees will consider how to correct or change their behaviour or the situation.

Where specified sections of SISA and SISR have been breached an Auditor Contravention Report will be lodged with the ATO.

An Auditor Contravention Report is necessary when a single or multiple material breach(es) of specific sections or regulations of SISA and SISR have occurred.

The Auditor Contravention Report (ACR) is completed and lodged with the ATO using online platforms.