The Digital age is here!

SMSF compliance in 2014 looks like this:

Rapid advances in technology

The fastest growing companies are tech-based

High demand for fast, accurate and competitively

priced services

Buzz words of today: Collaboration and integration

Technicians are being replaced by entrepreneurs

Cloud computing and offshoring widespread

Why is this happening?

We all want real-time information NOW

If it can be done, we should be doing it

Global competition is a reality

People are expensive!

Big money is being attracted to SMSF, providing an

opportunity for innovation and change

Gen X and Y are moving in

The auditor’s position in the value chain

The only compulsory annual service

Vital protection mechanism

Opportunity to educate and raise standards, reporting to

administrators and Trustees

Provide confidence to the regulators that the system is

robust

For the value chain to achieve its’ optimal performance,

auditors must close the technology circle.

Not sit out on their own at the end!!

How Disruptive is Digital?

If we do what we’ve always done, we will no

longer get what we’ve always gotten

Those who don’t change will be out-priced and

out-performed

Even worse, if we can’t convince the industry of

our value, we may become obsolete!

94% chance your job will be computerised in the

next two decades

What do we do that can be

improved by technology?

There is not a single task that auditors do

that can’t be improved by technology.

– Receiving data / files

– Workflows

– Data entry

– Audit Planning

– Materiality calculations and exception reporting

– Analytical testing (data analytics)

– Verification of holdings and valuations

– Documenting audit testing and conclusions

– Report preparation

Not just Replaced but IMPROVED

Automation has the potential to remove the risk of human error, sampling errors, and variations in auditor judgement between auditors.

ASIC –Friday 27 June 2014 ASIC “In our view, in 20% of … key audit areas that we reviewed across …audit files at firms of different sizes, auditors did not obtain reasonable assurance that the financial report as a whole was free of material misstatement”

Commissioner John Price said, “While audit firms have made good efforts to improve audit quality, these are yet to be reflected in our risk-based inspection findings”.

“Our inspections suggest that the following three broad areas continue to require improvement by audit firms:

1. the sufficiency and appropriateness of audit evidence obtained by the auditor

Current technology for auditors

“Live” portals

CRM workflow

Salesforce

Online audit workpapers that automatically (and intelligently)

populate based on the financial information of the client

(download straight from from admin software)

Analysis tools that check and validate data – from highlighting

exceptions to verifying bank balances, transactions, property

holdings, shareholdings (CAATTs).

Adobe (editable version)

Data feeds

Social media tools

What not to do

Fail to make use of technology already available

Repeat what’s already been done in the value chain!

Waste money on technology that adds nothing

Use developers not dedicated to your projects

Ignore the technology of your clients

Assume that if you build it they will come

Can Audit be Fully Automated?

YES!!

It is ENTIRELY POSSIBLE

that we will be able to build

a real-time audit robot

that fully automates the audit process.

Even auditor judgement CAN be programmed.

My view of the future of SMSF

Transactions audited as they happen

Fully integrated, intelligent system of systems.

Auditors will need to customise solutions for different

markets segments: Direct trustees (B2C, chinese walls)

Accountants (outsourcing)

Administrators (large scale)

1300 283 487

www.superfundauditors.com.au

Brisbane | Gold Coast | Sydney | Central Coast Melbourne | Tasmania

© Jo Heighway, ENGAGE Super Audits, 2014

This presentation is for general information only. Every effort has been made to

ensure that it is accurate, however it is not intended to be a complete

description of the matters described. The presentation has been prepared

without taking into account any personal objectives, financial situation or

needs. It does not contain and is not to be taken as containing any securities

advice or securities recommendation.

Furthermore, it is not intended that it be relied on by recipients for the purpose

of making investment decisions and is not a replacement of the requirement for

individual research or professional tax advice. This presentation was

accompanied by an oral presentation, and is not a complete record of the

discussion held. No part of this presentation should be used elsewhere without

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