Outsource your firm’s SMSF audits through AuditMatch and we will find an equivalent number of independent SMSF audits for your firm, no reduction of your SMSF audit fees.
Our AuditMatch service is for accounting firms that use either an in house SMSF auditor or an audit firm that belongs to the same network. It is for firms that have good Chinese wall processes in place to ensure independence that has now been taken away from them.
The ATO have confirmed that from the 2022 financial year (relating to 2021 accounts) an SMSF auditor will not be able to perform the audit of a fund where the same firm or even network firm that has done any appreciable accounting work on that fund.
For this not to apply basically the fund needs to approach the firm with accounts prepared to trial balance.
AuditMatch is your solution to the above problem. Whilst we can’t allow you to continue to audit the funds in your own firm, we can source an equivalent number of SMSF audits from a number of other firms in a similar position to you.
This merely means they can now outsource their audits but not lose any fees.
Simply, if you place a particular number of audits into AuditMatch we will then find you a similar number of audits to perform at the same price as those you provide.
All communications can be done through the portal so that it doesn’t matter how many auditors and administrators you are dealing with.
We will run our initial algorithm in late June to allocate all your audits. All you then do is communicate through the portal, upload your files, download your audit reports.
If you have an issue then communicate through the portal, if you don’t get a resolution then we will adjudicate for you.
If that still doesn’t work we will assist in applying for specific superannuation advice from the ATO.
AuditMatch is beneficially owned and operated by Peter Johnson from Advisers Digest. Peter runs Australia's only dedicated SMSF Auditor training program.
When AuditMatch allocates audits to you, ours soon to be patented process will randomly select audits from at least 5 different firms so that you will never have an independence threat from being too reliant on one client.
We also know that at times there will be conflict between the accountant and the auditor and by subscribing to AuditMatch you will have Peter Johnson as a technical adjudicator. We are already seeing issues with firms using external auditors where there is technical conflict.
Our fees will be substantially less than what you would need to spend on marketing to access an equivalent number of audits on your own and we will also not be forcing you to accept lower fees for the audits you do plus you won;t be competing with auditors that charge far less.
We have solved our algorithm problem. This means that we can ensure that when you give us a particular number of funds we can match the number of audits you get exactly. It means that we can run this algorithm periodically to also ensure that when you add new funds or remove funds we can continue to keep equality of funds and audits.
Our fee is $4.40 per month per audit that is in the system. So if you have 100 funds you will pay us $440 per month.
You couldn’t run an advertising campaign to achieve the same at this price. This is the most cost effective way to maintain your level of SMSF audit fees.
This will actually be led by our members. Remember that whatever you charge will also be charged to you. Your fees will be the same both in and out.
At this stage there will be three tiers of audits and we will match based on each tier. Simple audits will be $440 each, the mid tier is $660 and the top level will be $1,100 per audit.
We will put in place some rules around what goes in each level but be assured that for each $440 audits you give to the system you will receive the same back. Same with the $660 and $1,100 ones.
We will need at least ten thousand funds to ensure that there is a large enough pool to guarantee your independence.
We are well on our way to that number. We are well on our way to having the required number of funds and we believe we will be well in excess of the number required.
This would certainly allow you to save the fees of having us administer the network but this is like employing family. It is great until there is an issue and you can’t get rid of them.
You will have technical conflict, you will have conflict over the bills, 30 years of selling to accountants has also taught me that you will struggle with debtors (payment up front is required in AuditMatch), you will need to sort out the documents because you won’t have a portal that keeps everything. In the end it will be far more expensive and time consuming to run your own small network.
Peter Johnson has been providing services to the accounting profession since 1988. There is very few people in the country with this level of experience.
Peter knows that accountants LOVE to delay paying for services. This is understandable because their own business is cash flow intensive with high debtors but virtually no creditors.
The AuditMatch system will require the firm to pay for the audit report before they can download it. So you have great incentive to finish your work because you know you will get paid immediately.
Yes, we have seen a number of other organisations offering different services that seem to be referred to as a “marketplace”. They are reputable organisations and well worth a look at. There are also accountants forming their own pools.
In terms of competing in a marketplace it means you are competing for the audits just like everyone else. You put your 100 audits into the marketplace and you bid for other audits. There is no guarantee that you will receive 100 audits.
If you are considering a marketplace just first confirm that you will get your audits back. It doesn’t really matter if you outsource your audits for $440 and get the same back at $440 as this is revenue neutral for you.
Just be careful of putting your 100 audits up and getting the all done for $440 but no one accepts your price because someone is going in there all guns blazing.
At AuditMatch you WILL get substantially the same number of audits back at the exact same fee (on average it has to be the same number). Setting up your own pool will also ensure you get the same fees back.
Further, we know there will be technical conflict now that you are going outside your own organisation. In my role at Advisers Digest I get daily queries from auditors and accountants who are in technical conflict with each other over an SMSF Audit. At AuditMatch we will have an “appeals” process.
Where there is technical conflict then the query comes to me and we will provide an answer. This answer will provide all necessary legislative references. If either party does not accept that answer then we will go through the process of applying for either Specific Superannuation Advice or a Private Binding Ruling.
If we were wrong in our advice then we wear the costs of the application but if we are right then the accountant that made the mistake pays the cost of the application for the Ruling. You will not get this service if you subscribe to a MarketPlace nor your own pooling arrangement.
Finally, at AuditMatch we allow you to subscribe to a payment up front option. The Fund Administrator will not be able to download the audit report until it is paid for. I have been selling products and services to accountants since 1988 and I can guarantee you that you will have substantial debtors if you provide credit services to accountants. It is really the only creditors they can manage to have.