Running your own self-managed super fund (SMSF) comes with a lot of freedom, but it also brings important responsibilities that can’t be overlooked, and one of the biggest is the annual audit. Many trustees feel nervous about this step, but with the right support from our SMSF specialist accountants, staying compliant becomes far less stressful and much more straightforward.
Frequency of SMSF Audits
Every self-managed super fund must be audited at least once a year—there are no exceptions—and it’s not just a quick look at your numbers. This is a detailed process that checks two crucial aspects of your fund: the financial records and the compliance with superannuation laws. The law requires that an independent, approved SMSF auditor must undertake this audit each financial year before you lodge your fund’s annual return.
Financial and Compliance Audit Explained
Some trustees mistakenly believe that an SMSF only needs a basic financial check, but the audit goes deeper than just balancing the books. The financial side confirms that your fund’s accounts are accurate and fairly presented. The compliance side examines whether your fund has followed all the super rules, for example, adhering to contribution limits, investing correctly, and not using fund money for personal purposes.
What Happens if You Don’t Submit an Audit?
If an SMSF doesn’t complete its required financial and compliance audit each year, the trustee cannot lodge the annual return (SAR) on time. Late lodgement can trigger administrative fines under the SIS Act and Tax Act. Continued non-compliance may even force the fund to wind up, with rollover delays and contribution rejections likely while the fund’s status is listed as ‘regulation details removed’. If you skip or delay an audit, the Australian Taxation Office (ATO) can apply penalties, so it pays to stay organised.
What is an Approved SMSF Auditor?
Auditors must be qualified and registered with ASIC (Australian Securities and Investments Commission) to be recognised as approved SMSF auditors. They also need to be completely independent, which means they cannot provide accounting or financial advice to your fund at the same time. This protects you and ensures there’s no conflict of interest when reviewing your fund’s activities.
What Audit Documentation Does the Auditor Require?
To complete the audit properly, your auditor will need access to a range of documents and clear records. Some of the main paperwork includes:
- Annual financial statements for the fund.
- Bank statements for all accounts held in the fund’s name.
- Evidence of investments, such as term deposits, shares or property holdings.
- Contribution and pension payment records.
- Minutes of trustee meetings and decisions.
- Insurance policy documents, if held through the fund.
What to Expect and How to Stay on Track
Audits shouldn’t feel overwhelming—if you stay organised and work with experts who understand the details of SMSF compliance. Our advice is simple: keep thorough records all year, review transactions regularly, and don’t wait until the last minute to gather documents. A smooth audit protects your fund’s good standing and gives you confidence that your retirement savings remain secure and compliant.