Hi, I am auditing a fund that had a contravention in FY22. Providing financial assistance to member >5% of fund assets.
The contravention was rectified in FY23 (the year I am auditing).
Given it was rectified, ACR Test 4 is not relevant.
Just confirming an ACR must be lodged under Test Three (Trustee received advice of contravention and breached the same section again?), given the existing contravention still existed during 2023 before it was rectified.
Thank you.
Hi Jason
Yes I agree with you that you would report the contravention under test 3 as it existed during the 2022/23 financial year. The ACR would disclose that the breach has been rectified during the 2022/23 financial year.
Thanks
The Auditors Institute