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.

Jennifer Yu

Feb 20, 2023

Scammed bank account

in SMSF Technical Forum

Dear Support,

We have a SMSF client who are in his 90s. He declared that two transactions (in a total of $26k) from his SMSF to his personal bank account were done by the scammer. His personal bank account was scammed in a total of $98k(in few days by multiple transfers) which was acknowledged by the bank. The accountant treated $26k as a SMSF loss; however, the bank only provides information that the scammer took money from his personal bank account. His SMSF has a balance of $240K. Is this the correct accounting treatment?

The fact is the money $26k was transferred from SMSF bank account to his personal bank account, as far as how the personal fund to be used/consumed, do we need to take consideration? The accountant said he can't treat it as a pension as the client didn't actually receive that money.

Your help will be appreciated!

Kind Regards

Jennifer

6 answers0 replies

Comments (6)

Eric Taylor

Feb 22, 2023

I would be asking more questions first. How did the scammer access the SMSF account? (They may be linked). Why did the scammer transfer to his personal account, not direct to the scammer? Why did the scammer stop at $26,000. There may be answers (withdrawals from the SMSF only to a linked account, withdrawal limits etc.), but I would certainly ask the questions to get the complete picture.

Jennifer Yu

Feb 22, 2023

Replying to

Thank you Eric for your insight! Yes, I did ask these questions and have different opinion from the accountant. The fact is the money went from SMSF account to his personal bank account, as far as how the personal money was used is not auditor's concern. However, the accountant disagreed and tried to treat as SMSF loss. The SMSF member is doing the legal proceeding to try to get the money. We'll wait to see the result of this legal matter.