Each year, every SMSF needs to be looked over by an auditor. They do two things – check that the fund’s financial statements are accurate (the “financial audit”) and look for areas where the trustees might not have complied with the super rules (the “compliance audit”). They provide a report to confirm they’ve done these things and, if they find problems, they’ll issue what’s known as a “qualified” report. Certain problems (eg high risk areas) need to be reported to the ATO in what’s known as an “auditor contravention report” (or ACR).