Clear audit preparation makes SMSF compliance faster and less stressful. Audit season can present a host of challenges, from gathering documentation to meeting the latest Australian Taxation Office (ATO) requirements.
A well-prepared SMSF file lowers the chance of audit delays. It also protects your clients from extra scrutiny.
In this article, we share the best ways to prepare for SMSF audits. It also includes resources to help your clients’ funds be ready for audits every year.
Every SMSF must undergo an annual audit by an approved SMSF auditor. These audits aren’t just a best practice—they’re a core compliance obligation under superannuation law.
Submitting an incomplete or inaccurate audit file can result in serious outcomes: audit qualifications, legal exposure, ATO scrutiny, and financial penalties for your client.
Well-prepared SMSF files lead to more efficient audits. That means fewer follow-ups, faster turnaround, and lower compliance risk for both your firm and your clients.
Preparing throughout the financial year, not just at audit time, makes the process smoother, more accurate, and less stressful.
Trust Deed and Deed Updates
Ensure the SMSF trust deed is up-to-date and compliant with the latest superannuation laws. Include any deed amendments, changes of trustee, or variations. Review trustee declarations to ensure they are signed and current.
Financial Statements
Submit a full set of financials: operating statement, statement of financial position, and member statements. These help reflect the fund’s super balances and contributions against the relevant caps.
Bank Statements
Include 1 July to 30 June bank statements for all SMSF accounts. These should match the financial records. They need to show all investment and contribution activities. This is especially important for contribution splitting or co-contributions.
Investment Valuations
Provide current market valuations for all assets, including property, shares, and collectables. Where independent valuations are not possible, ensure you include justifiable valuation methods that align with the SMSF’s investment strategy.
Property Documentation
If the SMSF owns real property, include contracts, title deeds, lease agreements, and independent valuations.
Loan Agreements and Related Party Transactions
If your client’s SMSF has a related party loan or LRBA in place, make sure to provide full documentation. This includes the loan agreement, interest calculations, and payment history. It’s essential that all terms reflect arm’s-length conditions to meet compliance standards.
Contribution and Pension Documents
Include notices of intent to claim deductions (NAT 71121), pension commencement documents, minimum pension payments confirmation, and government co contribution acknowledgements.
Minutes and Resolutions
Minutes of trustee meetings, investment strategy reviews, and resolutions must be documented and signed.
These are essential to demonstrate compliance and forward planning.
Investment Strategy and Risk Assessment
Provide the current investment strategy, ensuring it includes insurance consideration for members and aligns with actual investments held. This also helps document how the fund is working toward members’ retirement goals.
Member Information
Include member details, TFNs, and any changes to member balances or structures during the year. Highlight any concessional contribution cap breaches or other contribution limits to monitor.
The ATO provides detailed insights into what it looks for when auditing SMSF auditors. While the focus is on the auditor’s performance, accountants and advisers can gain useful visibility into what matters most in audit compliance.
Read the full breakdown here: ATO – What we look for when auditing an SMSF auditor
This includes:
Documentation to support auditor independence
Assessment of audit evidence sufficiency
Adherence to auditing standards
Risk-based audit planning
Adequate audit documentation to support conclusions
Understanding these criteria helps accountants and advisers prepare files that facilitate compliance.
The ATO has developed an SMSF Auditor Checklist (PDF), which auditors use to verify that the fund complies with both regulatory and financial reporting standards.
We suggest proactively reviewing this checklist before submitting your audit files. It not only provides clarity but also helps catch mistakes before finalising the annual return.
Use a Standardised Checklist
Adopt an internal checklist that mirrors what auditors and the ATO expect. Consider aligning your firm’s checklist with the ATO SMSF Auditor Checklist.
Centralise Documentation
Maintain a secure digital file structure for each SMSF with clearly labelled folders (e.g., Bank Statements, Property, Pensions, Contributions, etc.)
Communicate Early with Clients
Don’t wait until the end of the financial year to request documents. Set expectations with clients early and send reminders to ensure timely delivery.
Reconcile Accounts Monthly
Conduct internal reconciliations monthly or quarterly to identify issues early, rather than during audit season or right before lodging the annual return.
Stay Informed
Subscribe to ATO updates and SMSF professional bodies to stay informed on regulatory changes that may impact the audit in July 2025 and beyond.
Partner with a Reliable SMSF Auditor
An experienced SMSF auditor is more than a compliance box-ticker. They can be a valuable resource in strengthening your firm’s SMSF offer.
If you’re looking to streamline your SMSF audit process, SMSF Engine offers dedicated audit services tailored specifically for accountants and financial advisers. Our team works seamlessly with your existing systems, liaises with clients when required, and ensures timely, compliant, and hassle-free outcomes.
We understand the complexity of audit preparation, changing ATO expectations, and the pressure points accounting firms face. With our collaborative approach, you benefit from fewer delays, faster audits, and greater peace of mind.
You can also outsource your SMSF administration or order an actuarial certificate directly through SMSF Engine to centralise and simplify your compliance workflow.
When you combine organised documentation, audit readiness, and a reliable SMSF partner, the process becomes smoother, more accurate, and far less stressful.
Whether you’re managing a single SMSF or a portfolio, our team helps you stay focused on what matters most – delivering value to your clients.
Use the EOFY Checklist and ATO audit guidelines as your foundation, and let SMSF Engine support you with accuracy and speed.
Need fast turnaround and dependable SMSF audit results? Get in touch with us today.
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