#9859
Awan Hammad
Participant

    Hi Clare

    SMSF auditors should refer GS016 being the Guidance Statement for Bank Confirmation Requests. Paragraph 14 & 15 state:

    “14. In other instances, when:
    (a) an entity’s banking activities are simple and straightforward; and
    (b) the auditor has considered the entity’s control environment and assessed the risk of material misstatement of bankrelated account balances and disclosures as low; and
    (c) there are other means to obtain sufficient appropriate audit evidence in respect of banking activities;
    the auditor may decide not to request a bank confirmation.

    15. Alternative sources of audit evidence may include, for example, bank statements for the relevant period provided on bank letterhead; together with:
    (a) the bank facilities letter, on bank letterhead, documenting the banking facilities used by, or made available to, the entity; and
    (b) bank reconciliations that agree to the bank statements.”

    It would be appropriate to consider requesting a bank audit certificate for a SMSF in instances where:

    1. It is a new SMSF client. (& you do not have a detailed knowledge of the trustees / the transactions of the SMSF)
    2. The bank account is a material or substantial part of the SMSF’s assets.
    3. Not all bank statements were provided over the year.

    The recent Melissa Caddick case has shown that documents can easily be amended so part of the decision will be based around a risk assessment of the SMSF.

    Refer attached link that lists banks and way of getting certificates:

    https://www.ausbanking.org.au/for-customers/audit-confirmation-request/

    If other members have a view please let the forum know.

    Thanks
    THE AUDITORS INSTITUTE

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