In the accounting world, as we shape and adapt our business models, we experience continual resource demands and constraints. Coupled with the increasing complexity of legislation and regulator activity, this provides an environment where the effectiveness of the SMSF registered auditor process and liaison structure is critical to the effectiveness of client service provision. This is particularly pertinent in the lead up to lodgement period.
The peak SMSF annual return lodgement period is often a time where an auditor is contacted by clients to work through how to resolve complex audit queries. These queries are usually of high complexity and many relate to multiple financial years for a fund.
The convergence of complexity and urgency impacts client outcomes, the relationship with the auditor, and more broadly staff engagement within their chosen career. Of course, there are some people who may thrive in such an environment, however from personal experience, most accountants are relieved when these peak periods pass.
Finding an auditor that partners with you is key to managing this; providing structured choices on collaborating effectively with your team at the right time, supporting you to work at your best, and mitigating the volume and length of such intense work periods.
There are multiple service delivery offerings from auditors, and what you are looking for will tend to be associated with relationship, choice, structure and effectiveness for your business.
At Evolv we partner with you to provide a relationship lead service that supports the elaboration required to enable complex query process effectiveness. This includes:
► A pre-audit enquiry service where specific questions you may have about an investment or transaction and the auditor considerations, including any associated Part A and / or Part B qualifications and Auditor Contravention Reporting obligations are considered with a SMSF registered auditor supported by our audit technical team. This service is an included component of our contracted audit fee to support a known outcome prior to the audit submission.
► Information guidance is available for clients for common complex audit matters via our Client library. Regular newsletters and client webinars are provided to elaborate on auditor evidencing considerations. This guidance is also referenced within our query process.
► Regular liaison with your client relationship manager is provided to articulate how the information has been considered, clarify that we have understood the fund investment or transactions circumstances, and discuss further audit information requirements to support the audit assertions and / or SISA/SISR compliance.
► Potential Audit qualifications are provided in draft form to support confirmation of our understanding of the circumstances and trustee response. We work with our clients to support, where possible, a reportable contravention is rectified or there is a planned rectification included within the Auditor Contravention Report.
► Optional catch ups with your team – Clients can choose regular catch ups for their team with their key relationship manager and SMSF registered auditor, to discuss queries, audit evidencing considerations, what evidence is available in the circumstances and potential audit qualifications and why. The design and regularity of such catch ups depends on each client needs, including consideration of effectiveness and what works best for the client.
Our experience supports that complex queries, where possible, are best addressed prior to audit submission within an audit consultation process. Complex queries often require a verbal explanation or conversation to frame the auditor’s understanding of how the information has been considered and how this fits with the scope of the audit of the fund. Where early consultation is not possible, a relationship led consultation process within the conduct of the audit is key to supporting the effectiveness of complex query resolution.
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