Every self-managed super fund (SMSF) needs an independent audit each year before its annual return goes to the ATO. The trustees, not the fund's accountant, are responsible for appointing an approved SMSF auditor, and the ATO says this must happen no later than 45 days before the annual return is due.

Many Brisbane trustees ask whether they can engage an auditor directly or must go through their accountant. They can hire one directly. This article explains what the audit covers, what it usually costs, the main types of service available, and the checks worth making before you sign an engagement letter.

What an SMSF audit covers

An SMSF audit has two parts. The financial audit checks that the fund's financial statements are accurate and supported by evidence. The compliance audit checks that the fund has followed superannuation law during the year, for example the sole purpose test, the in-house asset rules, the rules on dealings with related parties, and the requirement to keep fund assets separate from members' personal assets.

If the auditor finds certain breaches, they must report them to the ATO in an Auditor Contravention Report (ACR). Some providers charge a separate fee to prepare one, so it is worth asking about this before the audit starts.

Can trustees hire an auditor directly?

Yes. The law requires the auditor to be an approved SMSF auditor registered with ASIC. It does not require the appointment to go through an accountant. Many accountants arrange the audit for their clients because it is convenient, but trustees are free to choose their own auditor.

The main rule is independence. An auditor should not audit a fund when they, or their firm, prepared the fund's financial statements. This applies whether you appoint the auditor yourself or your accountant arranges one for you.

What SMSF audits cost

ATO statistics for the 2023-24 financial year put the median SMSF audit fee at $550 and the average at $651. Just over half of all audit fees (52.1 per cent) fell between $500 and $999.

Published prices from providers that serve Brisbane trustees fall into a few broad patterns:

• Flat-fee online audits. Some online providers advertise a headline fee of around $330 including GST for funds whose financial statements are already complete, with turnaround of a few business days once all documents are uploaded.
• Tiered pricing by asset mix. Some providers publish price bands. One published example is $330 for a simple cash-and-share fund, $440 when the fund holds direct property or unlisted shares, and $550 when the fund also has a limited-recourse borrowing arrangement.
• Quote-based pricing. Funds with crypto assets, private company shares or other complex holdings are often priced by individual quote rather than a published table.
• Bundled annual packages. Some firms combine bookkeeping, financial statements, the tax return and the audit in one annual fee. One published example starts at $1,300 plus GST for a cash-and-share fund and rises to $2,000 plus GST or more for funds with several properties, unlisted assets or private loans. 

A headline fee is only a starting point. Check whether it includes GST, property title searches, company extracts and any ACR fee. Published ACR fees in the examples above range from $110 to $130.

Audit-only services and bundled services

There are two main models, and each suits a different kind of trustee.

Audit-only. You or your accountant prepare the financial statements, then send the complete file to an independent auditor. The headline price is usually lower, and this model suits trustees who already have an accountant they are happy with.

Bundled. One firm keeps the fund's records, prepares the statements and tax return, and arranges an independent auditor for the annual audit. SMSF Australia describes this model for Brisbane trustees at smsfaustralia.com.au/smsf-accountants-brisbane: the fund's ledger is kept in Class Super with live data feeds, and an independent ASIC-registered auditor connects to the same file at audit time. The benefit is a single point of contact. The trade-off is that the audit is priced as part of the package, so you usually cannot buy the audit alone at a lower rate.

In both models, the auditor who signs the report must be independent of the person who prepared the accounts.

Turnaround times

Published turnaround times range from about three business days to around 10 business days. In most cases, the clock starts only when the provider has a complete file. If a bank statement, dividend statement or member declaration is missing, the clock stops until it arrives.

Because the auditor must be appointed at least 45 days before the return is due, leave enough time for questions. A fund with property, borrowing or unusual assets can take longer than the headline turnaround.

Software and data feeds

Many SMSFs keep their records in Class Super or BGL Simple Fund 360. Some auditors connect directly to these platforms, which can reduce the number of documents you upload and make it faster to answer the auditor's questions. If your accountant already uses one of these platforms, ask the auditor whether they can work from read-only access.

Checks to make before you sign

Before you accept an engagement letter, ask the provider to confirm the following in writing:

• The auditor's name and registration. Some providers do not name the signing auditor on their website. Ask for the auditor's full name and ASIC SMSF auditor number, then search the ASIC register to confirm the registration is current.
• Professional indemnity insurance. Ask for proof of current cover.
• Independence. Confirm that the auditor did not prepare, and is not connected to the firm that prepared, your financial statements.
• The full price. Ask for a written quote that shows GST, any surcharge for property, borrowing or crypto, and the ACR fee.
• Turnaround. Ask what counts as a complete file and when the clock starts.
• Where the work is done. If it matters to you, ask whether the audit work is performed in Australia.
• Contact. Some Brisbane practices offer meetings at their office. Many providers work only online. Decide which you prefer.
  
  

Documents the auditor will usually ask for

Having these ready shortens the audit:

• Bank statements for the full financial year
• Investment, dividend and distribution statements
• Contract notes for shares bought or sold
• Property title documents, lease agreements and valuations
• Loan documents for any borrowing arrangement
• Records of member contributions and benefit payments
• The trust deed, the investment strategy and trustee minutes 
  
  

Conclusion

Trustees in Brisbane can appoint an SMSF auditor directly, and the choice comes down to registration, independence, price and timing. Use headline prices as a guide only. Match your fund's assets to the right price band, get a written quote that covers GST and complexity surcharges, and expect to pay close to the national median if the fund holds more than cash and shares.

This article is general information only and is not financial advice.