Administration & Management
SMSF audits in the age of COVID-19
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An audit may seem a necessary evil, however, it's an opportunity for an overview of the status of your SMSF - an assessment of the fund's compliance as well as its overall health. Look at the annual audit as a medical check-up of your fund, which is worthwhile given the unique challenges COVID-19 brings.  

To make life a little easier for you, we've assembled a 14-point checklist to get you on your way.

1. Check the trust deed

Check the Trust Deed to ensure it is properly executed. And make sure the trusteeship and membership align. When a company is trustee, all members must be directors (the principle exception being single-member funds). With individual trustees, all must be members of the fund (again, single-member funds being the main exception).

As a rule - if there has been a change of member or trustee circumstances throughout the year, this is impetus to review the fund's Trust Deed.

2. Review the fund's investment strategy

Check if the fund's investment strategy is fit for purpose, given recent (and probably continuing) market volatility. And don't just look at the fund's Strategic Asset Allocation (its long term 'benchmark' risk/return nexus). Consider the fund's ability to take short-term positions away from the benchmark.

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