Thanks a lot for reply on 08/09/2023
If the client do not want to do any rectified of problems in Unit Trust but they reduce amount SMSF investment into Unit Trust less than 5% total asset of SMSF , so in the future, do auditor whether still need to check Unit Trust for comply Reg.13.22 C & D every year even invest under 5%?
Althought invest under 5% that client do not breach In House Asset rules but if client has never rectified , please give me your ideas what auditor need mention for audit ?
Many thanks
Hi Phuong
My view is if asset value is now less than 5% of market value of Fund's assets it will not be in breach of the in-house asset rules.
It is also arguably no longer a material investment from an audit perspective so arguably no longer needs to be reviewed re compliance with SIS Regulations 13.22C & D.
If the issues raised by yourself have not been rectified I would consider doing an auditor contravention report and explaining what has happened and how the investment is now less than 5% of the Fund's assets.
Thanks
THE AUDITORS INSTITUTE