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HI
A small Husband and Wife Fund with individual trustees.
They are getting divorced.
The wife has signed the trustee declaration in the accounts but refuses to sign the audti engagement letter or the representation letter.
Have I been engaged?
Toby
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Hi Toby
There may be differing views re this query.
My view is that you can be engaged by 1 of 2 trustees if 1 refuses to sign the engagement letter.
In terms of the audit the audit risk increases and you have to consider why the trustee refuses to sign the engagement letter and representation letter.
I would be writing to the trustee who has not signed the requested documentation and advise them of their reponsibilities re having to appoint an auditor. You could also refer to section 35C(2) of SIS that requires:
"The trustees must provide the auditor with the necessary documents to complete the audit in a timely and professional manner; and within 14 days of a written request from the auditor."
Other issues for you as auditor are:
Section 126K of SIS
Section 126K of SIS requires that:
"A disqualified person cannot be a trustee, investment manager or custodian of a
superannuation fund."
Many auditors will include this in their trustee representation letter that each trustee is not a disqualified person. How will the auditor sign off on this section if no such statement from the Trustee is received?
2. Section 35B of SIS
Section 35B of SIS requires that:
"The trustees must prepare, sign and retain accounts and statements."
There would be a breach of this section if both trustees have not signed the financial statements. This may not be an issue in your example.
If other members have a view please let the forum know.
Thanks
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