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Clare Evans

May 05, 2021

Ethical clearance - New Auditor asking for multiple documents

in SMSF Technical Forum

What is considered professional courtesy in regard to information given to a new auditor, asking for ethical clearance?

The new auditor asked standard questions such as "Is there any ethical reason why I should not accept the appointment", "Was the fund qualified last year, was an ACR lodged, please provide a copy of the report if so".

But in addition has asked for 12 other documents such as signed financials for prior years, minutes, trust deed, commencement documents. Documents decades old in some cases.

I have never experienced such a lengthy request and it seems a bit excessive to me.

What is considered reasonable?

Thanks in advance.

2 answers2 replies

Comments (4)

Campbell McCart

May 20, 2021

My view is different. As an auditor who has finalised the previous years work you would have sent a Management Letter and Audit Report. These would have been based on the financials provided by the Accountant you were working with. Are not Trustees required to keep documentation for 10 years. In my representation letter they sign off on the fact they have done so. It is not our responsibility to act as a filing system for lazy clients. If they really need it, charge them a fair fee for your time and effort involved, but do not be excessive.

Clare Evans

May 20, 2021

Replying to

Thanks very much Campbell. I have sent a lot of ethical clearance letters and only even received a reply to a handful, so it seemed excessive to ask for so many documents from an auditor. My thought is that the trustee can't really be bothered finding paperwork also. I appreciate your input.