Tips & Traps: Auditors and End of Year Financial Reports
Have you filed your annual financial statements with ASIC?
Remember that if your company is not a “disclosing entity”, you have 4 months financial after the end of your financial year to lodge the statements – which for most members will be the end of October.
If you are a “disclosing entity” then you only have 3 months after the end of your financial year to have lodged your financial statements with ASIC.
Some proprietary companies are disclosing entities because the business is structured as a trust. To work out whether you are disclosing entity, ask your auditors to give an opinion based on ASIC's guidance. Use form FS 70 to lodge your financial statements. Click here to go to ASIC website for more information.
Changing auditors
If you decide to change your auditor around the time your financial statements are due, you may need to apply for an extension of the deadline for your audit and/or pay a late fee . This is because ASIC must approve any change of auditor and this can take several weeks.
Remember ASIC is not required to approve a change of auditor. You need to provide reasons why you want to change auditors, details of the status of the audit and a written confirmation that the proposed replacement auditor will accept the appointment.
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