SMSF stands for self-managed superannuation fund. Under this scheme, employees would be entitled to receive postretirement benefits in form a huge amount at maturity of that fund. Usually companies manage this fund in order to secure the future and post retirement life of their employees. On other hand it is also a legal obligation for companies to manage such fund for its employees. It means that it would not be wrong to say that almost every company/business is governing this fund. Here, most important thing which should be considered that this fund is established under corporate laws of a state as a separate legal entity. Like, it is an arrangement where company and SMSF are two different legal entities. Assets and liabilities of SMSF are different from companies. As it is a separate entity, don’t you think there is a need of audit of SMSF which can evaluate effectiveness and compliance with local laws and regulations? Also, note that almost in every state, it is a legal restriction to obtain audit report on financial statements of a fund. That is why, almost every company who is managing SMSF also hire external auditors. However, a same accountancy firm which is also auditing financial statements of a company can be hired for SMSF or not is depends on different governing laws of different states.
If we take a look on reasons of hiring experienced and professional financial auditors Adelaide, unquestionably one would have to construct a huge list. But some important reasons are a) company can obtain an independent report by auditors on efficiency and compliance issues b) improvement in accounting and historic record of funds c) revamping of accounting system of a fund d) coping with a statuary in order to circumvent coercive measures against company and fund and most importantly obtaining report on internal control system of a fund. Just like corporate entities, all these reasons are very critical for SMSF and sometimes people say that when it comes for auditing of SMSF, this aspect possess more sensitivity and complexity. This is because corporate entities are profit making ventures while on other hand SMSF is pool of funds which would be handed over to retired employees at the age of their retirement.
It is the main reason due to which even Government sometimes pay more emphasise for auditing of SMSF than corporate entities. Remember that although audit is not a fraud detecting exercise but professional auditing approach can also cater for this critical aspect. Moreover, as in these days, hiring of qualified and experienced accounting firms is not that much time taking because accounting firms are also communicating with their clients via online medium. Therefore, every SMSF should have to recruit professional accounting firms and so, it is a value addition.