SMSF annual audit preparation checklist
Every SMSF must be audited annually by an ASIC-registered SMSF auditor before lodging its annual return. The audit covers both the financial statements and compliance with the SIS Act. Poor preparation causes delays, qualified audit reports, and potential ATO enforcement.
This is a 12-step checklist for preparing a self-managed superannuation fund for its annual audit under Part 12 of the SIS Act 1993 (Cth). It covers financial statements, compliance tests, and auditor engagement.
The checklist
Finalise financial statements
Prepare the fund's financial statements including the operating statement, statement of financial position, and member statements.
Reconcile bank accounts
Reconcile all bank and investment accounts to 30 June and ensure balances match the financial statements.
Value fund assets at market value
Obtain market valuations for all fund assets as at 30 June, including property, unlisted investments, and collectables.
Review investment strategy compliance
Confirm the fund's actual investments are consistent with the written investment strategy and document any review or update.
Check contribution caps
Verify that concessional and non-concessional contributions received during the year are within the applicable caps for each member.
Verify pension payments
If the fund is paying a pension, confirm the minimum annual payment was made before 30 June and documentation supports each payment.
Test related-party transactions
Review all related-party transactions for compliance with the arm's length requirement and the in-house asset rules.
Confirm sole purpose test
Confirm the fund has been maintained solely for the purpose of providing retirement benefits to members or their dependants.
Review trustee minutes and resolutions
Compile trustee minutes and resolutions for the year, including investment decisions, pension commencements, and benefit payments.
Check borrowing compliance
If the fund has a limited recourse borrowing arrangement, confirm ongoing compliance with s 67A including the holding trust structure.
Compile audit working papers
Prepare the audit file including signed financial statements, trustee declarations, bank statements, asset evidence, and the trust deed.
Engage the approved SMSF auditor
Provide the complete audit file to the ASIC-registered auditor and allow sufficient time for the audit to be completed before the annual return due date.
When this checklist applies
Use each financial year when preparing the SMSF for its mandatory annual audit ahead of the annual return lodgement.
Common pitfalls
- Asset valuations not at market value or using stale valuations from prior years
- Missing the minimum pension payment before 30 June, which can disqualify the pension exemption
- In-house asset threshold exceeded without a rectification plan
- Incomplete trustee minutes making it difficult for the auditor to verify decisions
- Engaging the auditor too late, risking a qualified report or late lodgement
Run this checklist on a real matter
Quillio can cross-check contribution cap calculations, flag related-party transactions, and generate audit preparation checklists tailored to the fund's asset profile.
General SMSF audit preparation guidance. Complex assets, borrowing arrangements, and pension strategies require specialist SMSF advice.
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