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Dear Sir/Madam,
A SMSF investment into Vanguard in 2022 FY (Investment Product is Vanguard Balanced Index Fund)
Client provided "Vanguard Personal Investor Annual Statement" period ending 30/06/2022 and
"Independent Review report by the auditor to the Board of Directors of Vanguard ...."from PWC (not Independent Audit Report)
Please show me what else documents that enough for audit this investment
Many thanks
Hi Phuong
The documents that you need for an audit is based on the professional judgement of the auditor. Typically an auditor would rely upon a Vanguard statement as being sufficient audit evidence (but this should be dependant on a number of issues).
The audit evidence required is impacted by such issues as:
1) Materiality
2) Audit risk
If the Vanguard statement has been provided directly by the client this is not as reliable audit evidence compared to an external confirmation direct to the auditor by Vanguard.
An example of this is the Melissa Caddick case that involved SMSF's and Commsec statements possibly being relied upon by auditors as audit evidence. An article that covers this issue and audit evidence is:
https://www.smsfadviser.com/news/20971-melissa-caddick-scam-highlights-fraud-risks-for-smsf-auditors
In terms of what audit evidence is required this will be dependant on the overall Fund and the assets that it has & consideration of materiality and audit risk.
If other auditors have a view please let the forum know.
Thanks
SMSF AAA