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Sarah Bichry

Apr 23, 2024

Question on internal control

in SMSF Technical Forum

Hi Auditor Institute team,

I am auditing a Fund, which has an account with Coinspot. The account is under the name of the SMSF. However, only one trustee has access to this account with his personal email address. My understanding is that there is a weakness in the control environment. Under ASA 315 the auditor is required to examine the internal controls of the SMSF and document the auditor’s understanding of the control environment. What if the trustee member passed away and the other member is unable to have access to the Fund's assets? Should I qualify Part A, and recommend in the management letter for both trustees have access to the coinspot account?

Thank you for your guidance.

Sarah

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Apr 24, 2024

Hi Sarah

My view is that you do not need to issue a Part A qualification in relation to the control issue.

The opinion of the Part A audit report is that:

"In my opinion, the financial report presents fairly, in all material respects, in accordance with the accounting policies described in the notes to the financial statements, the financial position of the fund at 30 June 2023 and the results of its operations for the year then ended".

If you have been able to verify the asset as at 30 June 2023 you should not need to raise a Part A qualification re the asset and the control issue raised.

Yes you should raise your concern in your management letter.

If other forum members have a view on this please let the forum know.

Thanks

The Auditors Institute