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I am auditing an SMSF – 2 members -Husband and wife.
I am aware that one of the two members in the fund has onset dementia.
In my email of standard questions to the trustee I ask:
“Are any members of the superannuation fund suffering any cognitive impediment, or mental incapacity? This would include memory loss, dementia
Do any members have a “Legal Personal Representative” to take over the members responsibilities “
The husband has advised me that he has an enduring power of attorney for his wife who has the onset dementia. Not yet Full blown Dementia.
What are my super fund audit requirements from here?
1)Should I sight the enduring power of attorney? _ and if so, are there any special things I should be looking for in the document?
2)The Wife is still shown as a director of the corporate trustee per ASIC .
Should the wife still sign off on the accounts and trustee declarations – she can still sign her name?
3)Should the Financial statements mention anything about her mental state, and the enduring power of attorney?
4) are there anything else I should consider or ask for.
One thing to consider is that just because the husband has an EPA for the wife, it does not mean he can sign the financials instead of her. The wife must first be removed as a trustee (or removed as a director of the trustee company). See SMSFR 2010/2 for more detail (particularly paragraph 7 and examples 2 & 3).