Why an SMSF Auditor Matters More Than You Think
Need an SMSF auditor?
Learn what they check, what documents are required, and how DKM helps keep your fund compliant and audit-ready.
An annual SMSF audit is a legal obligation. But more than that, it’s a checkpoint. It tells the ATO whether your fund is being run properly and tells you whether there's anything quietly falling out of line.
What an SMSF Auditor Is Actually Looking For
An SMSF audit includes both a financial and a compliance component.
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The financial audit verifies the accuracy of the fund’s year-end accounts.
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The compliance audit assesses whether the fund has followed the Superannuation Industry (Supervision) Act 1993 (SIS Act), the trust deed, ATO guidelines, and other legal obligations.
An auditor is not there to reconcile unclear records or guess the trustee’s intent. Their job is to test whether the fund has been properly administered and whether supporting evidence exists to prove it.
In practical terms, they’ll check whether the investment strategy exists and has been followed, whether contributions and pensions align with legislative limits, and whether decisions made by the trustees were actually documented. If a transaction breaches the rules or if the documentation is missing, the auditor must raise it.
What You Need to Provide (And Why It Matters)
The biggest risk in SMSF audits is documentation that doesn’t exist, doesn’t match, or doesn’t support the transactions being reviewed. Auditors are not permitted to overlook gaps in records or accept informal explanations.
A compliant audit trail usually includes:
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A current and signed trust deed
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Trustee declarations and member applications
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Investment strategy and any reviews or updates
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Minutes of trustee meetings and decisions
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Year-end financials, bank statements, contribution records, pension summaries
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Invoices, property records, title deeds, and lease or loan agreements (if applicable)
If a required document is missing, for example, a trustee declaration for a new member or a loan agreement for related-party lending, the auditor must qualify the audit. If the breach is material, they are required to report the fund to the ATO.
What a Contravention Means and What Happens After a Failed Audit
When an SMSF audit identifies a compliance issue, the auditor must issue a written management letter.
If the breach meets the ATO’s reporting thresholds, the auditor is required to lodge an Auditor Contravention Report (ACR). This is a mandatory obligation under the auditor’s registration conditions. It does not matter whether the breach was minor, accidental, or already corrected.
A contravention does not automatically result in penalties. But it puts the fund on the ATO’s radar. Multiple breaches across financial years, or one serious compliance failure, can lead to administrative penalties, trustee disqualification, or the fund losing its complying status.
At DKM, we identify likely contraventions before the audit begins. We correct documentation gaps, prepare resolutions where needed, and ensure the file that reaches the auditor reflects a complete and accurate picture. If the ATO ever reviews your fund directly, nothing should be left to interpretation.
DKM Accounting & Taxation Services was the best value for my tax return. David was very helpful, and the process was quick and hassle-free. Highly recommended.
Karen is prompt, friendly, patient, helpful and knowledgeable. She and her team Lemuel always replies quickly to the enquiries. Also she takes time to explain and help map understanding the issues and solutions. 5 stars service!
Della Z.
I am happy to work DKM and especially Karen and Jimmy. Karen is always very accurate, fast and proactive. She is very intelligent and doing outstanding job. Thanks to Karen and DKM accounting for their exceptional service consistently
Gokmen C.
How DKM Prepares Your SMSF for Audit
We treat audit readiness as a compliance process in its own right. That means your fund is prepared throughout the year, not patched together at year-end. Our role is to ensure that what reaches the auditor already meets the ATO’s expectations , clearly, completely, and without missing information.
Governance from Day One
From the time your fund is set up, we ensure that trustee resolutions are properly drafted, member records are signed and stored, and trust deeds are executed correctly. Every structural element that auditors review later is accounted for from the beginning.
Real-Time Compliance Tracking
We monitor compliance indicators throughout the year. This includes contribution caps, pension obligations, related party limits, asset segregation, and insurance considerations. Issues are raised and addressed as they occur not after the fact.
Gap Review and Pre-Audit Reconciliation
Before the fund is passed to an auditor, we complete a final review of the file. If documentation is missing or incomplete, we request it and correct the position. This avoids delays, qualification, or unnecessary ATO reporting.
Independent Auditor Referral
We refer each fund to an ASIC-registered SMSF auditor who is fully independent of our team and has no relationship with the trustees. That independence is required by law and is critical to maintaining the fund’s complying status.
locations
Find DKM Accounting near you. Our locations make expert financial support easily accessible, whether in person or online.
Because Your Finances Don’t Stop at Super
When you're serious about building wealth and taking control of your financial future, managing an SMSF is just the start. Staying ahead means having every part of your finances working efficiently, from tax obligations to bookkeeping and business accounting. It’s not about doing more; it’s about knowing the right areas to streamline, so you can get on with it.
Bella Vista, nsw 2153
Location
408, 29 Lexington Drive
Bella Vista NSW 2153
Hours
Monday: 9:30 am - 6:30 pm
Tuesday: 9:30 am - 6:30 pm
Wednesday: 9:30 am - 6:30 pm
Thursday: 9:30 am - 6:30 pm
Friday: 9:30 am - 6:30 pm
Saturday: Closed
Sunday: Closed
Contact
Deakin, ACT 2600
Location
2/8 Phipps Cl,
Deakin ACT 2600
Hours
Monday: 9:00 am - 5:30 pm
Tuesday: 9:00 am - 5:30 pm
Wednesday: 9:00 am - 5:30 pm
Thursday: 9:00 am - 5:30 pm
Friday: 9:00 am - 5:30 pm
Saturday: Closed
Sunday: Closed
Contact
Speak with an SMSF Accountant
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Frequently Asked Questions about smsf auditors
Do I need an SMSF auditor if my fund hasn’t done anything this year?
Yes. Even if your SMSF had no activity, no contributions, and no investments during the year, the fund still requires a full audit. The ATO doesn’t waive audit obligations based on inactivity. A qualified SMSF auditor must review the fund annually before you lodge your return.
What’s the penalty if I don’t get my SMSF audited?
If your SMSF isn’t audited before lodging the annual return, the return is considered invalid. The ATO may issue administrative penalties, suspend lodgement privileges, or flag the fund for review. Repeated failures can result in trustee disqualification or the fund losing its complying status.
How early should I appoint an SMSF auditor?
You must appoint an auditor at least 45 days before the due date of your SMSF annual return. But in practice, early appointment allows more time to resolve any documentation issues before deadlines apply. A rushed audit increases the risk of delays, qualifications, or ATO scrutiny