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I have a fund to audit. As per the deed dated in 2015, ' Principle employer' is listed with in the schedule.
This is a single member fund.
The trustee is the same company as the principle employer.
The trustee company has two directors.( the member and another individual)
May I know the situation to list ' principle employer'?
As an auditor, do we have to take any additional check?
Hi There are a couple of other practical things to look out for;
1. if the SMSF trustee is also a trading company, separation of assets could be difficult unless all SF assets clearly show the company ATF the SMSF in the title
2. the dual purpose company cannot be a special purpose trustee company so it is not eligible for reduced ASIC fee
3. Often a company may be trustee for a family trust as well as an SMSF so the same issues as above apply - this often occurs when trustees don’t want the expense of a separate company
Separation of assets is important in the event of the company being sued in relation to a non-SMSF matter - it could put SMSF assets and therefore members funds at risk
If I do see it in a deed, I always make a management letter comment regarding the risk, but the accountants tell me it almost always falls on deaf ears
Regards
Julie