Hi we are preparing the accounts as at 30 June. If we have to do it later so be it. Some of the larger SMSF auditors get the client to provide an Core logic valuation and the title search prior to audit.

A title could have been done at year end on a client who might not come back for an audit.

I like to do the search on or around the 30/6 which is the date when the accounts advise that the property is and SMSF asset. I have wasted alot of search fees on property which has been sold after the end of the year and the search only provides details of the new owner. Vic search sounds good as it gives some history.

My initial response is that the title search date must be after 30/6/21 but the issue is how recent should it be dated for the auditor in considering subsequent events? Further, should the auditor rely on the document provided by the client or should the auditor obtain the search direct?

I always do the search at the day of the audit and I do it myself as part of the cost of doing business essentially, where there are multiple searches I may pass the costs on. I think as at day of audit ensure nothing has changed since 30/06/2021 and usually if you have done the audit the previous year you have on from Feb 2021 or the like

Thanks a lot for the detailed reply, I really apricate that.

Regards

Dawood Hassan

Refer example title extract for a Victorian property (& reference to activity in last 125 days):

LAND DESCRIPTION

Lot 1 on Plan of Subdivision 7464W.

PARENT TITLE Volume 1 Folio 971 Created by instrument PS794W 18/11/2016

REGISTERED PROPRIETOR

Estate Fee Simple Sole Proprietor S SMIL of 1 SMITH COURT NARRE WARREN VIC 3805 AN584B 04/01/2017

ENCUMBRANCES, CAVEATS AND NOTICES

MORTGAGE AN4235Y 04/01/2017 AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD COVENANT PS7794W 18/11/2016 Any encumbrances created by Section 98 Transfer of Land Act 1958 or Section 24 Subdivision Act 1988 and any other encumbrances shown or entered on the plan set out under

DIAGRAM LOCATION

SEE PS7494W FOR FURTHER DETAILS AND BOUNDARIES

ACTIVITY IN THE LAST 125 DAYS

NIL

Hi Dawood

Normally you are only verifying investments such as shares, managed investements, term deposits at 30/6/2021 (year end) so you would normally not have to request statements to day of audit.

I note that when you do a Victorian title search you get activity in the last 125 days (refer below example). You could argue that ideally the title search should be done within 125 days of 30/6/2021 (year end). This is not always practical. Again, it would be great to get others auditors views.

Thanks

SMSF AAA

Thanks for the reply.

Should the same approach be applied on other assets class e.g. manged funds, Shares and term deposits i.e, should we request a statements from July 1st to the date of audit.

Thanks

Dawood Hassan

Hi Dawood

A title search is done by an auditor to check:

1) Ownership of property.

2) Name property owned in.

3) Is there a charge / borrowing in place on the title.

My view is that the date the title search should be done is the date you are doing the audit which in your example is 5/5/2022.

Further I believe this is the approach that most auditors take as this is the practical approach to dong a title search in relation to a property held as at 30 June 2021 and in respect of the audit for the year ended on that date.

If other members have a different view it would be great to hear their views.

Thanks

SMSF AAA