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1/ A SMSF invested under OAK Capital Mortgage Fund. The OAK Capital Mortgage Fund used this fund (Eg 100K) that as a part of amount to lending to OAK’s borrowers Eg 5M to companies (OAK have mortgaged properties). Client provided Annual Statement 30/06/2023 that issued from OAKCapital. Please give me your ideas what else documents that also need provide more for audit this investment between SMSF and OAKCapital? Do auditor really need order titles that OAK mortgaged?
2/ Client only provide the signed Resolutions of Directors of the Company trustees that listed name and contribution amounts of members. (One of members 18 years old who has Catch - up Concessional Contribution 125K in 2023 FY).
- Can auditor audit basic on the signed Resolution and leave it for ATO pick up without need client show Unsused Carry forward CC….in the last 5 years?
- Assume client does not show Unsused Carry forward CC or show it but have couple years of the last 5 years that not eligible, so whether what section breach?
Many thanks
Hi Phuong
My view is that most auditors would just rely on the statement received from Oak Capital Mortgage Fund and not go further and order title searches re the various mortgages.
In relation to the contributions my view is that as long as the Fund is allowed to receive a contribution for a member the auditor does not need to consider the amount of carried forward concessional contributions. That is if the member has received excessive contributions this will be raised by the ATO through an excess concessional contributions assessment.
In terms of the audit re contributions the auditor is signing off on SIS Regulation 7.04 that requires per the audit report that:
"Contributions can only be accepted in accordance with the applicable rules for the year being audited".
The main requirement of SIS Regulation 7.04 is that contributions can only be accepted as per the below table:
If forum members have a view on the above please let the forum know.
Thanks
The Auditors Institute