Duration: 2.5 Hours

Hear from the experts at this online conference. You can watch it on your computer or on your portable electronic device from anywhere.

The conference will be based on our highly successful video webinar technology: there'll be a chairperson and presentations.

One registration can be shared by colleagues within the same firm utilising the same login.

THE PROGRAM

Session 1: Auditing the Investment Strategy in Uncertain Times

Recent case law has raised the pressure on the SMSF auditor’s duty of care, particularly when scrutinizing a fund’s investment strategy. These challenges have only increased in light of COVID-19 and the sudden drop of assets. This session examines the key issues, including:

• Understanding compliance with regulation 4.09 (2)
• What has driven the extra ATO focus on investment strategy?
• Is it just a question of diversity of investment or more than this?
• Is holding 90% of SMSF value in one asset a risk not worth taking?
• Impact of COVID-19 and plummeting asset values – how should investment strategies be adjusted to cope?
• COVID-19 and early access (authorised / unauthorised) – does this impact the investment strategy?
• Getting the trustees to explain investment rational
• Proof of why trustees follow a particular strategy – importance of minutes and other documentation
• ATO role in assessing adequacy of investment strategy
• Auditing or providing financial advice – when are you crossing the line?

Session 2: Non-Arm’s Length Income and Expenses: The New Landscape

Recent changes have focused more than ever on income going into the fund and fund expenses. The nexus that puts it into either category is explored in this session, along with recent reforms introduced in light of COVID-19. It covers:

• Identifying related parties and where transactions must be at arms length
• Understanding recent amendments to law on NALI and fund expenses
• The ATO perspective on NALI and expenses
• Draft Law Companion Ruling LCR 2019/D3 – what is its impact?
• Demonstrating sufficient nexus to non-arm’s length expenditure and income
• Restrictions on what trustees can do for the fund
• Performing actions other than in capacity as trustee – what are the risk areas?
• Unpacking the ATO’s COVID-19 rent relief concessions
• Related party rent adjustments (discounts, deferrals or rent holidays) – are they reasonable and fair? Do they stack up in light of contributions paid from the related party to the fund?
• Audit outcome for NALI - Part A and/or Part B qualification?
• Case studies on application of new rules

Session 3: Auditing Pensions: Avoiding the Traps

As an increasing number of SMSFs are having members move towards pension phase, there are a number of traps that can occur and need to be flagged. This practical session looks at recent reforms that have been introduced in response to COVID-19, as well as other practical issues auditors need to consider when reviewing pensions. It covers:

• Temporary reduction of drawdown requirements for account-based pensions:
  • How to work out the reduced minimum annual payment
  • Are clients trying to bring forward these measures?
• Checking the condition of release has been complied with
• Documenting start of pension and commutations start date is correct
• Correct valuation of pension in financial statements
• Checking exempt current pension income is correct
• Checking pension payments have actually been paid and other requirements met
• Reviewing legacy documents on file
• Case study – audit checklist on pensions