Types of Independent Audit Services

External Audits

From time to time, entities may employ our services to conduct an external audit of their organisation. This type of audit would involve review of financial reports and other management reports to form an opinion on whether these reports provide a true reflection of the operations of the entity.

As part of this audit, quality control systems and procedures would be reviewed and tested to identify any areas of weakness that may result in error or omission in reporting. Recommendations would be reported to identify areas where improvements may be realised.

External audits can be provided for all types of entities including commercial and not-for-profit including charities.

Audit of a Company

The objective of a Financial Report Audit is to enable us to express an independent opinion to members as to whether the Financial Report is prepared, in all material aspects, in accordance with an identified Financial Reporting Framework. For example – Audit of your Financial Report within the requirements of the Corporations Act, 2001.

Not for Profit & Associations

Not for Profit Organisations

Not for profit organisations also need to have audits conducted on their accounts to ensure that they have a true representation of their accounts presented to members.  Requirements for an audit are set out in the organisation’s governing constitution.

Entities can be Public Companies limited by guarantee, Private Companies, or State Registered Incorporated Associations.  We have many years of experience in these types of audits.

Charities

The Australian Charities and Not-for-Profits Commission (ACNC) registers organisations as charities. These may include organisations registered with us including:

  • public companies limited by guarantee;
  • proprietary companies limited by shares;
  • registered Australian bodies;
  • foreign companies.


The charities registered with ACNC are divided into three levels each with different levels of financial criteria and reporting requirements in accordance with the Australian Charities and Not-for-profits Commission Act 2012.

Associations

Incorporated Associations are regulated by the Associations Incorporation Act 2015 in Western Australia (applies for financial years commencing on or after 1 July 2016), or the equivalent in other states. In Western Australian, Incorporated Associations are divided into three levels each with different levels of financial criteria and reporting requirements.

An association is required to keep true and accurate accounting records that explain the financial transactions and the financial position of the association in a manner that can be conveniently and properly audited; and submit accounts at each AGM showing the financial position of the association at the end of the preceding financial year must be verified to confirm that the financial records show that the Association has book keeping processes in place to adequately record their income and expenditure and dealings with its assets and liabilities.

AGM is required to hold within 4 months after end of financial year.

Compliance & Non-financial Audits

Audit of a Real Estate Agent & Settlement Agent Trust Account

The objective of the compliance audit is to enable us to express an independent opinion to the licensee in accordance with Sections 70(2) and 79 of the Real Estate and Business Agents Act 1978 or with Sections 51(2) and 60 of the Settlement Agents Act 1981 in Western Australian, as to whether:

(a) the trust accounts have been regularly kept and properly written up;
(b) the trust accounts were ready for examination at the periods appointed by me;
(c) the agent has complied with all my requirements as auditor;
(d) the trust accounts are and have been in order during the year of the audit; and
(e) there is any matter in relation to the trust accounts to be communicated to Consumer Protection

Audit of a Motor Vehicle Dealer Trust Account

The objective of the compliance audit is to enable us to express an independent opinion to the licensee in accordance with Motor Vehicle Dealers Act 1973 in Western Australian, as to whether:

(a) the trust accounts have been regularly kept and properly written up;
(b) the trust accounts were ready for examination at the periods appointed by me;
(c) the agent has complied with all my requirements as auditor;
(d) the trust accounts are and have been in order during the year of the audit; and
(e) there is any matter in relation to the trust accounts to be communicated to the Department of Commerce

Audit of a Strata Title and Outgoing Audits

The objective of a strata title audit is to ensure that collections and payment of outgoings by a strata management company has been properly accounted for in accordance with the rules and regulations governing the strata company and also the proper management of its funds.

Therefore, an audit provides transparency to all those involved – strata owners, strata managers, management committees etc. The following are reasons why you should have your strata plan audited:

1. Peace of mind – strata owners contribute regular levies for common strata expenses or to maintain or improve the strata complex, they want to know that their levies are being put to the best use, and a strata audit provides this. The benefits to strata managers or committees are transparency and reduction in unnecessary enquiries or concerns by owners.
2. Accuracy – strata records are often maintained by volunteers or others who have good intentions, but limited experience in producing accurate and meaningful reports for owners. A strata audit will ensure that all reports are accurate, consistent and professional.
3. Owner protection – strata audits can detect important omissions or discrepancies such as underinsurance that can put the owners’ assets at risk.
4. Financial – strata audits may detect unpaid levies, overpaid expenses, mismanagement of funds or even fraud - things which impact the cost of levies for the owners.
5. Taxation – all taxation and GST obligations are checked during a strata audit so that owners are comfortable in the knowledge that they are compliant with the various taxing authorities.

A variable outgoings audit would help to determine the precise outgoings expenditure, such as rates, strata levies, insurance, taxes, cleaning, repairs and maintenance, etc, that a retail shopping centre would incur for the year, so that retailers leasing stores in such centres know how much to pay for their portion of such expenditure.

The type of expenditures and responsibility for such expenditures are normally found in tenancy agreements and the Act that governs such tenancies, if applicable, it is the Commercial Tenancy (Retail Shops) Agreement Act 1985 which focusses on retail shop leases and regulates distribution of specified landlord expenses (operating expenses) to tenants; however leases for some non-retail use such as businesses in shopping centres and other specified businesses are also covered by the Act.

Audit of a Commercial Lease Arrangement

A commercial lease arrangement audit would help to determine whether a tenant has been paying the landlord the correct amount of their share of the expenditure as stated in the lease agreement. For the tenant, this helps in efficiency and promotes savings through cost control.

Tenants having lease arrangements that do not come under the Commercial Tenancy (Retail Shops) Agreement Act 1985 would benefit from such an audit as it would reveal errors in computing their share of expenditure, highlight any over-payment and uncover instances of re-charge of expenditure not normally payable by tenants.

Audit of a Franchise

The Competition and Consumer (Industry Code – Franchising) Regulation 2014 takes over from the Franchising Code 1998 and relates to requirements and obligations that arise regarding franchising after 1 January 2015.

Under the new code Master Franchisors are required to have audits conducted related to their solvency – under Annexure of the Code, Section 21.5 states that for franchisors to be able to sell their entity as a franchise when they have not been operating for more than two years, they are required to submit an audit report on their solvency as part of set up process.

This is where Registered Company Auditors WA is able to help with the process. With over 20 years’ experience conducting audits,

Registered Company Auditors WA understands your requirements and is able to assist in the process of becoming a master franchisor. We have streamlined the process to ensure the issue of the audit report on solvency and the collection of the other documentation is as painless a process as possible.

We will also be able to assist you on an ongoing basis with your financial audit requirements in subsequent years. Please contact us if you would like to talk to one of our friendly team regarding the audit of your franchise entity.

Audit of an AFSL

Australian Financial Services Licensees (AFSL) have an obligation under Australian law for ensuring that they comply on an ongoing basis with the requirements of the Financial Services Reform (FSR) Act and the conditions specified in the license.

An audit of the AFS Licensee ensures that these obligations are being met, in addition to the requirements of the Corporations Act 2001 and the Australian Securities and Investment Commission (ASIC).

We are able to provide an audit to licensees throughout Australia.

Internal Audits

From time to time, entities may employ our services to conduct an internal audit which primarily focused on the processes and controls surrounding financial reporting. E.g. payroll, purchase, expense claim and sales.

Remote Audits

We have heard the need for a remote audit service for a variety of reasons. This service particularly suits small organisations or entities that are located in rural and regional areas, where it may be difficult to source an Auditor with appropriate qualifications.

It has also proved appealing to organisations with limited on-site space, or even larger organisations that work predominantly with electronically based documents. We work together with our clients to determine the audit service that best suits their requirements.

If you would like more information about how to utilise this service in the future, please contact us.

- Contact Us

Register Company Auditors are leading specialists in company audits, and also Self Maged Super Funds.

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Ground Floor, Suite 50
328 Albany Highway
Victoria Park
WA 6100

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