Dear Sir/Madam,
Shares were designed under trading name of company trustee name ATF SMSF (not exactly company trustee name)
Please give me ideas for whether any issue for audit . Many thanks
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I have a new but related issue for an SMSF which had two individual trustees; the husband passed away a few of years ago and a corporate trustee was established in 2018. Despite annual reminders in my management letters the shares do not appear to have been transferred to corporate trustee but remain in name of "Estate Late ( name of deceased individual) and his wife for the SSF. The SMSF was almost wound up in the 2022 (year of present audit). The widow members accumulation account discloses an in "specie transfer - share" itemised in the amount of under $ 40 k representing the market value of purported transfer to the widow on 30 June 2022. Upon requesting copy of transfer documents the Accountant has advised that the title to the shares has not been able to be altered to the widows name due to the ongoing issue not being able to change to the corporate trustee. I could request evidence that confirms that the shares are in "limbo" and qualify in this and the final audit for 2023 onbasis of section 52 B 2 d of SIS. I m quite concerned that one day the widow or her beneficiaries could hold the auditor accountable for being silent on this The Accountant has said that the legal costs to resolve the share ownership first in the corporate trustee name and then change to widows name may outwiegh the value of the shares but I seek to protect my position as auditor. Your recommemded course of action please. I have requesed a signed declaration from the widow as Trustee to confirm that the SMSF has properly transferred title to the shares as part of the in specie transfer, but could an auditor rely on this ? I see no way out of qualifying despite the fact the horse has bolted - most of the assets have been rolled out to an industry fund.