Sample Smsf Engagement Letter Template (Page 5 of 6) in pdf

drawing of conclusions based on the audit evidence gathered. Further, there are inherent

limitations in any audit, including the use of testing, the inherent limitations of any internal

control structure, the possibility of collusion to circumvent controls, and the fact that most

audit evidence is persuasive rather than conclusive. As a result, my audit can only provide

reasonable – not absolute – assurance that the financial report is free of material

misstatement.

As you are aware, you are responsible for prevention and detection of irregularities and

fraud. However, I shall endeavour to plan and conduct my audit so that I have a reasonable

expectation of detecting material misstatements in the financial statements or accounting

records arising from irregularities and fraud.

Because of the test nature and other inherent limitations of an audit, together with the

inherent limitations in any system of internal control, there is an unavoidable risk that some

material misstatement, fraud or irregularity may remain undiscovered.

2. Audit of Compliance

As auditor of the fund I am required to express an opinion with regard to the fund’s

compliance with certain provisions of the SIS Act, a summarised explanation of which are

attached. These provisions will be restated in my audit report which will be in the form

approved by the Australian Tax Office (ATO).

3. Report on Significant Matters

In addition to my opinion on the financial report, I will report any material weakness in the

fund’s system of accounting and internal controls, which come to my notice. I will also report

any matter as designated by specific reporting responsibilities and requirements under

Sections 129 and 130 of the SIS Act. This will be in the form of an ‘Audit Management

Letter’ and any prescribed ATO forms.

4. Confidentiality and Quality Control

The conduct of my audit in accordance with Australian Auditing Standards is subject to strict

confidentiality requirements. My audit files may, however, be subject to review as part of the

quality control review program of the Institute of Chartered Accountants in Australia, which

monitors compliance with professional standards. I advise that by signing this letter you

acknowledge that if requested, my audit files relating to this audit may be made available

under this program. Should this occur, I will advise you. The same strict confidentially

requirements apply under this program as apply to me as your auditor.

5. Tax Returns and Financial Advice

This engagement does not include services relating to Tax Returns or Financial Advice which

will be provided by your Accountant or other appointed advisors. Any advice provided at the

conclusion of the audit will be limited to factual information and recommendations with regard

to maintaining fund compliance. I am not licensed to provide financial product advice under

the Corporations Act 2001.

6. Fees & Payment

My fees, which are inclusive of GST, are based on the time spent and the associated risks of

the audit engagement and should be $xxx.

Sample Smsf Engagement Letter Template Page 5