653 paragraphs found
The audit assertions for auditing a SMSF’s cash and cash equivalents are: Existence – obtaining evidence that the cash exists and is correctly classified. Rights and obligations (ownership) – obtaining evidence that the cash is owned directly or …
Cash and cash equivalents are a SMSF’s most liquid assets and so may carry a high fraud risk. The auditor remains alert to fraud and the risk of fraud with respect to the SMSF’s bank accounts. The auditor assesses the internal controls surrounding the …
If the banking operations are significant to the audit, the auditor sends bank audit confirmation requests [87] to the SMSF’s banks. A bank audit confirmation is a request to a bank to provide independent confirmation for audit purposes of such …
Some SMSFs may utilise a cash account established with their broker, investment account or other investment platform (for example, IDPS) as part of their securities trading activity. This account may facilitate trading, settlement and receipt of dividends …
The investments of a SMSF may include: Listed securities; Fixed rate securities such as government, semi-government or corporate bonds, loans (secured or unsecured) and mortgages; Variable rate and discount securities such as bank bills, promissory notes …
Investments may be domestic, international or a combination of both and may be held by a custodian, the individual trustees or a corporate …
The audit assertions for auditing a SMSF’s investments are: Existence – obtaining evidence that the investment exists. Rights and obligations (ownership) – obtaining evidence that the investments are owned directly or beneficially by the SMSF. …
Audit risks to be considered in relation to auditing investments may include, but are not limited to: over or understatement of investment values, including compliance with the SISR in valuing investments at market value; and investments not beneficially …
The audit procedures relating to investments will vary depending on the administration and management arrangements adopted by the trustee, the type of investments held and the trustee structure that holds the assets. The auditor exercises professional …
When preparing year end accounts, SMSF assets are required to be valued at market value each financial year. [90] Market value is defined in the SISA [91] and the ATO’s guidance on the process to establish a market value is contained in its Valuation …