Reasons Of Recruiting Registered SMSF Auditors
Registered SMSF auditors, what does it mean? Those auditors who own charter for forming an opinion on Financial Statements of SMSF (Self-managed superannuation fund) are called registered company auditors. Just like audit of other companies and businesses, they form opinion on accounts of SMSF. Everyone knows that SMSF is constituted to safeguard old age benefits of employees. After retirement employees would not have to take any stress because they would be entitled a handsome amount which would secure their future. As formation of this fund is very lucrative for employees, almost every state has made it legal requirement to form such a fund. Company is primarily responsible to constitute and manage this fund. Trustees of this fund pool funds from employees in form of monthly deduction from their salary. Also, companies contribute their portion in this fund too. In this way employees at their retirement receive a huge amount. Now as constitution and management of this fund is very important and even obligatory, don’t you think one should have to hire an external party who can form their independent opinion on financial statements of SMSF? Of course, recurring qualified accounting firms for obtaining an audit report for SMSF is lot more than just making compliance of a legal requirement.
SMSF entities not only pool the funds of employees but also invest their money in different profitable ventures. For example, they may invest money in listed securities or may invest money in financial institutions in form borrowings. Note that, investees always show more inclination for investment of money by those SMSF entities who get their financials audited by reputed firms. On other hand, sometimes SMSF need money from financial institutions. It is pertinent here to consider that even banks show more interest in dispensing funds to those SMSF entities who possess audited financial statements. No one can deny that this element of trust building is very useful for SMSF entities.
Accurate accounting records
It might be possible that management of SMSF is not that much competent for preparing financial statements based on guidelines of International Accounting Standards. Also, they might willingly misusing money of employees for their own financial interest. In order to manage and detect all these issues, one should have to brace this fact that the only remedy is to get the Audited Financial statements of SMSF.
Companies and especially SMSF entities sometimes feel hesitation when they have to hire experienced and qualified auditors. This is because competent firms usually charge higher. However, one would be happy to know that throughout in Australia, such blissful services can be attained in low cost packages because of tough competition in markets over-there. So without thinking, every SMSF has to engage most skillful and qualified accounting firms over there.