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Jason G

Jan 21, 2024

Unsigned Copy of LRBA Loan Agreement

in SMSF Technical Forum

When the trustees only have an unsigned version of a document, such as loan agreement, what is the best practice regarding audit qualification/contravention reporting?

In this case, I have the executed bare trust deed, current year loan statements, and the unexecuted version of the loan agreement from the bank. I believe this is appropriate evidence to substantiate that an LRBA is in place.

However, is this insufficient evidence due to the loan contract being unsigned?

Would this warrant a qualification of S67a on the basis of insufficient evidence, or is it okay to proceed with an unqualifed audit report in this instance?

Thank you.

3 comments

Comments (3)

The Auditors Institute Ltd

Jan 22, 2024

Hello Jason

Thank you for your follow up question.

Whilst appreciating the loan account number on the unsigned loan agreement and in the current year loan statements is the same, this does not provide confirmation that the loan as executed is the same as that reflected in the unsigned loan agreement.

If a change in terms had hypothetically occurred, it is distinctly possible that the loan account number would have remain unchanged.

Edited