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What are the signs of false documents in an SMSF audit?

A document that disagrees with independent evidence, a source you cannot confirm, or a balance that does not match the bank’s own data are the main signs. The ATO’s common referral issue is failing to obtain sufficient appropriate audit evidence. Test where a document came from, because a clean look proves very little.

Sources for this answer
  • Common issues in the ATO’s referrals of auditors to ASIC are failing to obtain sufficient appropriate audit evidence, inadequate evaluation of that evidence, and inappropriate documentation to support the conclusions reached. [S14]

What goes wrong in practice

These are the common issues the ATO lists in its referrals of auditors to ASIC.

  • Failing to obtain sufficient appropriate audit evidence.
  • Inadequate evaluation of the evidence obtained.
  • Inappropriate documentation to support the conclusions reached.
Facts and sources for this part
  • Common issues in the ATO’s referrals of auditors to ASIC are failing to obtain sufficient appropriate audit evidence, inadequate evaluation of that evidence, and inappropriate documentation to support the conclusions reached. [S14]

Why looks are not proof

A forged statement can have the right fonts, a tidy layout and sums that add up. That is why the check has to move from how the page looks to where it came from, and whether it agrees with evidence you obtained yourself.

Facts and sources for this part
  • Common issues in the ATO’s referrals of auditors to ASIC are failing to obtain sufficient appropriate audit evidence, inadequate evaluation of that evidence, and inappropriate documentation to support the conclusions reached. [S14]

False work in another auditor’s name

ASIC alleges that a banned SMSF auditor created a series of false documents, a letter and 47 SMSF audit reports. These are allegations in a matter before the courts.

The ATO describes SAN misuse as an approved SMSF auditor’s details entered incorrectly, or an audit not undertaken. If your number appears on a return for a fund you never audited, check your records and tell the ATO.

Facts and sources for this part
  • ASIC alleges that a banned SMSF auditor created a series of false documents, a letter and 47 SMSF audit reports, and continued to act as an SMSF auditor while knowing he was disqualified. [S10]
  • The ATO describes SAN misuse as an approved SMSF auditor’s details being entered incorrectly, or an audit not having been undertaken, and says the TPB has terminated tax agents who deliberately misused an auditor number. [S14]

Checks that do not depend on the look

ASIC says the conditions on an SMSF auditor’s registration can be viewed by searching the auditor’s name in its Professional Registers Search.

  • Compare the document with the bank’s own data feed or a confirmation you request.
  • Check names, account numbers and running balances.
  • Check the register for an earlier auditor’s status.
  1. Lesson 4False documents and false audit evidence3 min
Facts and sources for this part
  • ASIC says the specific conditions on an SMSF auditor’s registration can be seen by searching the auditor’s name in ASIC’s Professional Registers Search. [S12]

Write it down

Whatever you find, note what you asked for, who answered and what changed. A clear file protects you if the evidence is later challenged.

Facts and sources for this part
  • Common issues in the ATO’s referrals of auditors to ASIC are failing to obtain sufficient appropriate audit evidence, inadequate evaluation of that evidence, and inappropriate documentation to support the conclusions reached. [S14]