5 Ways to Reduce Back and Forth During SMSF Audits

One of the most common challenges we see time and time again in SMSF audits is the back and forth caused by missing or incomplete information.

In most cases, delays can be avoided with a more proactive and structured approach before the file is submitted to your auditor. Here are our tips five tips on audit preparation that will reduce back and forth and lessen turn-around times.

1. Complete internal sign-offs before submitting to the auditor

A simple first step is ensuring your internal processes are tight. Having staff complete and sign off on our audit checklist before submission helps catch missing documents early and reduces unnecessary follow-up. You can find our audit checklist here (link). 

2. Ensure all documentation is accounted for

Documentation remains one of the biggest contributors to delays. Ensuring all core documents are included upfront — such as signed financial statements, tax returns, representation letters, and engagement letters — can prevent the need for repeated requests. 

3. Pay close attention to property and lease documents

Property valuations must be dated as at 30 June and supported by relevant comparable sales. Similarly, lease agreements should be reviewed to ensure they haven’t expired during the year. If they have, updated agreements must be provided to reflect current arrangements.

4. Look out for unlisted investments

Unlisted investments are another area where delays frequently arise. Where these assets are held, it’s important to include sufficient evidence supporting their valuation, such as:

• Recent sales activity

• Audited financial statements

• or updates from fund managers

If this information is not available, communicating this upfront to your auditor can help avoid unnecessary queries and allow the audit to proceed more efficiently.

5. Consider the investment strategy

It’s also important to consider whether key events during the year require updates to the investment strategy. Changes such as pension commencements, new asset classes, or the sale of significant assets should all trigger a review to ensure the strategy remains current and compliant.

If you’re aware of a potential issue before submitting the file, engaging with your auditor early can save considerable time later. 

Reducing back and forth during an SMSF audit comes down to preparation and communication. 

By ensuring all relevant documentation is accurate, up to date, and provided upfront, you can significantly streamline the audit process and avoid unnecessary delays.

If you have any questions, or want to check in on your audit readiness, our team is here to help.