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One of my audited fund opened 2 investment accounts in 2022 year with the Platform Stake (cash and shares portfolio). The platform somehow set up an incorrect trustee name by picking up a company which is actually the trustee for the client’s family trust, where the trustee of the SMSF should be individual trustees. Trustees were aware this case when prepare 2022 financials and took an immediate action to contact the platform and now the 2 incorrect accounts have been closed and new accounts were opened, and all the cash & shares were transferred to the correct stake accounts. Trustees have signed the declaration indicated those investments were under SMSF. However，the total assets of the 2 accounts were weighted 82% of the funds total assets. In this case, whether an ACR should be reported?
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Hi Xang
If you are of the view that the incorrect name was due to an administrative error then my view would be that there is no need to qualify the audit report or lodge an ACR re the issue. This is also on the basis that they have signed a declaration and immediately fixed the issue.
I would raise the issue in my management letter to the trustees.
If other members have a differing view please let the forum know.
Thanks
SMSF AAA