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I am currently auditing a super fund on the HUB 24 platform.
The accountant and financial planner want me to rely totally on the HUB 24 report.
When I requested the financial planner to forward a copy of the advisor agreement to take out $13,000 in fees - he said I should be replying in HUB 24 who showed the fees and he would not supply one.
Are other auditors relying totally on the platform reports?
Are other auditors requesting copies of agreements of advisor fees? ( often the biggest expense in the operating statement)
What other information are other auditors requesting for super funds on these platforms? see below
Extract of paragraph from Deloitte’s report on Hub 24 .
“The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. We have not performed an audit or review of any individual annual investor statement and, accordingly, we do not express an opinion or conclusion on any individual annual investor statement”
Where does it put the auditor relying on such a report?
Hi Peter
I have no personal experience with HUB 24. It would be great to get other auditor's view and approach re this platform.
From an audit perspective preferably the wrap reports are obtained direct from HUB 24.
My view is that most auditor's are relying on the platform reports received on the basis that they have received an appropriate audit report on the controls. I agree that Deloitte's comments in their report does raise concerns. I had a look at the Macquarie Wrap audit report and it is an "audit report" and as an example it does state:
"the Operator maintained internal controls and other relevant accounting procedures in relation to the preparation of annual investor statements".
In relation to expenses my view is most auditor's would be agreeing them to the wrap reports and doing a review to see if the total expenses are reasonable.
As an auditor you should be able to request a copy of the adviser agreement to be able to audit the expenses. You could remind the trustees / adviser of section 35C(2) of SIS that requires documents to be provided within 14 days of a written request from the auditor and that if not received this could possibly lead to a qualification / audit contravention report.
Thanks
SMSF AAA