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I am auditing ABC SMSF where Mr & Mrs are the only members and trustees of the fund. There are three contributions from their business (employer) for Daughter who is not a member of the SMSF in error and recorded as sundry creditor, which was returned after more than a year. The amount of sundry creditor is about 1.54% of the fund's total asset. Do you think this is reportable contravention?
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Hi Alkesh
Assuming the amount is less than $30,000 and it is not a first year Fund there would be no reason for this to be a reportable contravention.
In terms of the audit report re contributions we are signing off re SIS regulation 7.04 that requires:
"Contributions can only be accepted in accordance with the applicable rules for the year
being audited".
Arguably the breach of SIS re the contributions received in error is not returning the amount to the employer within 30 days of receiving the contribution as required by SIS regulation 7.04(4)(a).
Thanks
The Auditors Institute