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.

Want to become a Member?

Join Now

Already a Member?

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.

To test this feature, visit your live site.

Jason G

Oct 17, 2023

Edited: Oct 17, 2023

Insufficient Ownership Evidence

in SMSF Technical Forum

When there is insufficient evidence for the ownership of a fund's investment, e.g. a title search is obtained, but no purchase contract is provided for the property and no acknowledgement or declaration of trust, what is the appropriate audit report quaification?

I understand Part A, with respect to the assertion of ownership, should be qualified in that regard. Should Part B be qualified under R.4.09a?

Thank you.

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Oct 17, 2023

Hi Jason

Re your issues I would consider qualifying in relation to:

a) section 35C(2) of SIS that requires:

"The trustees must provide the auditor with the necessary documents to complete the audit in a timely and professional manner; and within 14 days of a written request from the auditor".

You would qualify on this section if a property was say acquired in the 2022/23 year and no purchase contract could be provided. This could also make it difficult to sign off on section 66 of SIS if a residential property was acquired and making sure it had not been acquired from a member or related party.

b) re no declaration of trust being provided I would consider qualifying re regulation 4.09A of SIS that requires:

"The assets of the SMSF must be held separately from any assets held by the trustee

personally or by a standard employer sponsor or an associate of the standard employer

sponsor."

Thanks

The Auditors Institute