.png)
What are the auditors requirements in relation to the calculation of an SMSF's income tax? Does materiality still apply to any errors identified in the tax calculation?
top of page
THE AUDITORS INSTITUTE | FORUM
Archived Forums
When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.
Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.
Disclaimer
The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.
bottom of page
Hi Peter
The Fund's audit report at Part A that covers the financial statements states that the financial reports are presented fairly in all "material respects". This means that materiality does apply to the calculation of the tax expense and any tax assets or liabilities from an audit perspective. That is the auditor is only saying that the tax calculation is materially correct.
The auditor is not required to review the annual return of the Fund so in relation to the tax expense / assets / liabilities the auditor is checking that these amounts are free from material misstatement.
If you are aware of any non material errors in the tax calculation these should be reported to the trustee in your annual management letter to the Trustees.
Thanks
SMSF AAA