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Sze Wai Yu

Mar 05, 2021

Cryptocurrency

in SMSF Technical Forum

Hi everyone,

I am currently doing a SMSF audit in which 90% of the member balances was invested in cryptocurrency and remaining in cash at bank. The trustee has signed the declaration of trust for the holding balance as at 30 June 2020 and also provided some screenshot for the transaction history from the mobile app/wallet; Due to the nature of the cryptocurrency, we would not be able to check the account holder as well as the holding balance for the superfund other than rely on the declaration of trust. What else do you do? Do you qualifiy?

Thanks in advance.

2 answers0 replies

Comments (2)

Unknown member

Oct 06, 2021

I am curious as to whether any one uses (in their capacity as auditors) any analytical/audit tools to track/verify wallet balances & crypto transactions linked to the said wallet address , any suggestions most welcome.

THE AUDITORS INSTITUTE

Mar 05, 2021

Hi Sze

As the cryptocurrency is clearly material if are you are unable to verify the existence of the asset then yes you should qualify your audit report at Part A re the financial audit.

The Fund annual return does have a question re "Was Part A of the audit report qualified". The ATO has advised that being advised of Part A qualifications allows them to risk profile SMSF's.

If you have any concerns re the compliance audit (eg SIS Reg 4.09A - separation of assets) you may also need to lodge a Part B qualification and also lodge an Auditor's Contravention Report (ACR).

Thanks

SMSF AAA