Automated data feeds a 'double-edged sword' for auditors
A recent article in SMSF Adviser suggests automated data feeds have both a positive and negative effect on the accuracy of client data.
Automated data feeds have led to efficiency improvements for auditors processing SMSFs however at the same time they are causing some significant headaches for auditors and are compromising the accuracy of data, making data feeds a ‘double-edged sword’ for auditors.
Auditors should be careful to not take data feeds at face value and ensure that when tracked information is provided by feeds, the information is manually checked and verified to ensure it is correct.
SMSF auditors should be checking data feeds to ensure there are no gaps where data feeds may have dropped out and should also ensure time frames and bank statements cover the correct periods.
As well as this, SMSF auditors should be checking that assets and bank accounts for the funds are correctly recorded and that the balances on bank statements all match.
While automated data feeds are saving a great deal of time for SMSF auditors it’s important to be aware that processes & audit steps should still be followed and the verification of information is critical to ensure all the funds that have passed through the SMSF are genuine and correct.
See original article here