Why use an external auditor
What you do is just as important as what you don’t do
It’s hard to audit your own advice. While accounting firms might have a degree of separation between their advisory and compliance divisions, in reality, these are “ethical walls” and may result in a reluctance to raise issues that could compromise the firm.
Transferring SMSF audits to an external auditor removes any doubt over independence, and helps establish the trust that successful practices are built on.
However, independence is just one reason to use an external SMSF auditor. Focus, profitability, turnaround time and expertise are also commercial considerations.
For example, SMSF audits have traditionally been a low margin activity with a high compliance cost. Using an external auditor means you can focus on more profitable activities that grow your business.
Similarly, the cost of upskilling staff may make SMSF audits an unviable revenue stream. Considering how to make the best use of limited resources should drive your decision-making.
Not all external audit arrangements are equal.
The reality is not all audit arrangements are equal. So just as you would interview a prospective employee, it’s important to ask the right questions to find an external auditor that is the right fit for your business and clients.