SMSF Specialist Auditor (SSAud) Exam cheat sheet

An SMSF must be audited annually by an approved SMSF auditor; the trustee appoints the auditor and the audit must be completed before the fund's annual return is lodged.

The approved auditor must be registered with ASIC, hold a current competency examination pass, and satisfy continuing professional development requirements.

A contravention is reportable to the ATO via the Auditor/Actuary Contravention Report (ACR) where it is likely to affect the fund's complying status and meets the reporting thresholds.

Rectification of a contravention before the audit may still require reporting if the breach was significant; the auditor assesses materiality and impact on members' benefits.

The audit report must state whether the financial statements comply with accounting standards and whether the fund complied with the Superannuation Industry (Supervision) Act and Regulations.

An independent audit is required even for a single-member fund; the auditor cannot be the trustee, a member, or an employee of the trustee.

Part A of the audit report covers financial statement matters; Part B covers compliance with SIS Act and Regulations.

The auditor must obtain a management representation letter and document the audit strategy, risk assessment, and evidence obtained.

The SIS Act and SIS Regulations form the primary legislative framework; the ATO regulates SMSFs while APRA regulates other funds.

The sole purpose test (s 62) requires the fund to be maintained solely for providing retirement benefits, or benefits on death, disability, or termination of employment.

The in-house asset limit is 5% of total fund assets, measured at 30 June each year; exceeding it requires rectification within a set period.

The bring-forward rule allows non-concessional contributions up to three years' worth in one year, subject to the member's total superannuation balance at 30 June of the prior year.

Concessional contributions are taxed at 15% in the fund; Division 293 imposes an additional 15% on high-income earners above the threshold.

The transfer balance cap limits the amount a member can transfer to the retirement phase; indexation occurs in $100,000 increments.

SMSFs must have a written investment strategy and review it regularly, considering diversification, liquidity, and members' circumstances.

The ATO's compliance approach includes education, rectification directions, and enforcement; administrative penalties may be imposed on trustees.

Financial statements must be prepared in accordance with Australian Accounting Standards; SMSFs typically apply AASB 1056 and AASB 101.

Audit evidence must be sufficient and appropriate; sufficiency relates to quantity, appropriateness to relevance and reliability.

Key assertions for investments include existence, rights and obligations, valuation, and completeness.

Bank confirmations and independent third-party statements provide higher reliability than internally generated documents.

The auditor tests contributions by reconciling to employer payment summaries, bank statements, and ATO data.

Benefit payments are tested by agreeing to member statements, bank records, and calculation of preservation and tax components.

Materiality is set at the planning stage and revised as the audit progresses; it considers the users' information needs.

Analytical procedures include comparing investment returns to market benchmarks and reviewing year-on-year fluctuations.

Investments must be valued at market value; the trustee determines market value, and the auditor evaluates the reasonableness of that determination.

Unlisted assets require appropriate valuation techniques such as discounted cash flow, comparable transactions, or net asset value.

Acquisitions of assets from related parties are prohibited unless an exception applies, such as listed securities acquired at market value.

The in-house asset test captures loans to, and investments in, related parties; certain assets are excluded, such as business real property.

Business real property acquired from a related party must be used wholly and exclusively in a business and acquired at market value.

The auditor reviews the investment strategy for diversification, liquidity, and the fund's ability to meet benefit payments.

Related-party transactions must be disclosed in the financial statements and assessed for arm's-length terms.

Collectibles and artwork must be insured, stored separately, and not used by members or related parties.

The auditor must comply with APES 110 Code of Ethics, including independence requirements for assurance engagements.

Independence is compromised if the auditor prepares the financial statements or provides services that are then self-reviewed.

The auditor must be independent of the fund, its trustees, and members; a financial or personal relationship creates a threat.

Threats to independence include self-interest, self-review, advocacy, familiarity, and intimidation; safeguards must be applied or the engagement declined.

The auditor must report contraventions to the ATO using the ACR where reporting criteria are met.

The auditor must communicate significant findings to the trustees in a management letter.

The audit report must be signed and dated, and the auditor's registration number stated.

Documentation must be retained for at least seven years after the audit report date.

An SMSF must be audited annually by an approved SMSF auditor; the trustee appoints the auditor and the audit must be completed before the fund's annual return is lodged.

The approved auditor must be registered with ASIC, hold a current competency examination pass, and satisfy continuing professional development requirements.

A contravention is reportable to the ATO via the Auditor/Actuary Contravention Report (ACR) where it is likely to affect the fund's complying status and meets the reporting thresholds.

Rectification of a contravention before the audit may still require reporting if the breach was significant; the auditor assesses materiality and impact on members' benefits.

The audit report must state whether the financial statements comply with accounting standards and whether the fund complied with the Superannuation Industry (Supervision) Act and Regulations.

An independent audit is required even for a single-member fund; the auditor cannot be the trustee, a member, or an employee of the trustee.

Part A of the audit report covers financial statement matters; Part B covers compliance with SIS Act and Regulations.

The auditor must obtain a management representation letter and document the audit strategy, risk assessment, and evidence obtained.

The SIS Act and SIS Regulations form the primary legislative framework; the ATO regulates SMSFs while APRA regulates other funds.

The sole purpose test (s 62) requires the fund to be maintained solely for providing retirement benefits, or benefits on death, disability, or termination of employment.

The in-house asset limit is 5% of total fund assets, measured at 30 June each year; exceeding it requires rectification within a set period.

The bring-forward rule allows non-concessional contributions up to three years' worth in one year, subject to the member's total superannuation balance at 30 June of the prior year.

Concessional contributions are taxed at 15% in the fund; Division 293 imposes an additional 15% on high-income earners above the threshold.

The transfer balance cap limits the amount a member can transfer to the retirement phase; indexation occurs in $100,000 increments.

SMSFs must have a written investment strategy and review it regularly, considering diversification, liquidity, and members' circumstances.

The ATO's compliance approach includes education, rectification directions, and enforcement; administrative penalties may be imposed on trustees.

Financial statements must be prepared in accordance with Australian Accounting Standards; SMSFs typically apply AASB 1056 and AASB 101.

Audit evidence must be sufficient and appropriate; sufficiency relates to quantity, appropriateness to relevance and reliability.

Key assertions for investments include existence, rights and obligations, valuation, and completeness.

Bank confirmations and independent third-party statements provide higher reliability than internally generated documents.

The auditor tests contributions by reconciling to employer payment summaries, bank statements, and ATO data.

Benefit payments are tested by agreeing to member statements, bank records, and calculation of preservation and tax components.

Materiality is set at the planning stage and revised as the audit progresses; it considers the users' information needs.

Analytical procedures include comparing investment returns to market benchmarks and reviewing year-on-year fluctuations.

Investments must be valued at market value; the trustee determines market value, and the auditor evaluates the reasonableness of that determination.

Unlisted assets require appropriate valuation techniques such as discounted cash flow, comparable transactions, or net asset value.

Acquisitions of assets from related parties are prohibited unless an exception applies, such as listed securities acquired at market value.

The in-house asset test captures loans to, and investments in, related parties; certain assets are excluded, such as business real property.

Business real property acquired from a related party must be used wholly and exclusively in a business and acquired at market value.

The auditor reviews the investment strategy for diversification, liquidity, and the fund's ability to meet benefit payments.

Related-party transactions must be disclosed in the financial statements and assessed for arm's-length terms.

Collectibles and artwork must be insured, stored separately, and not used by members or related parties.

The auditor must comply with APES 110 Code of Ethics, including independence requirements for assurance engagements.

Independence is compromised if the auditor prepares the financial statements or provides services that are then self-reviewed.

The auditor must be independent of the fund, its trustees, and members; a financial or personal relationship creates a threat.

Threats to independence include self-interest, self-review, advocacy, familiarity, and intimidation; safeguards must be applied or the engagement declined.

The auditor must report contraventions to the ATO using the ACR where reporting criteria are met.

The auditor must communicate significant findings to the trustees in a management letter.

The audit report must be signed and dated, and the auditor's registration number stated.

Documentation must be retained for at least seven years after the audit report date.