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What to do when the financial accounts and the annual return needs to be amended -When in the next year there is a new accountant and different auditor.
We have a found a $15,000 error in the previous year – this will effect the tax payable in the previous year
and it relates to an asset sold in the previous year.
If we amend the previous years annual return do we:
1) need a whole new audit of the previous year –
2)do we lodge the amendment without any auditor input
3)try to go back to the previous auditor & inform him to of the adjustment and ask for a second audit report ( yes this would be the best alternative but if not available)
4) any other alternates that can be suggested?
Hi Peter
My view is if a tax agent lodges an amended annual return there is no requirement for a new audit report and that the return can be lodged without auditor input. I am not aware of any legal or ATO requirement that would require a new audit report to be issued.
The tax agent should advise the auditor of the amendment to the annual return and the amendment to the financial statements (assuming they have also been amended).
I would get the accountant to put a note in the following years financial statements that note that there was an amendment to the original prior years signed financial statements and annual return and explain the amendment and that the comparatives have been updated to reflect the change.
If members have a differing view it would be great to get their view.
Thanks
SMSF AAA