100+ Free ASIC SMSF Auditor Competency Exam Practice Questions

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Sample ASIC SMSF Auditor Competency Exam Practice Questions

Try these sample questions to test your ASIC SMSF Auditor Competency Exam exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under section 17A of the SIS Act, what is the maximum number of members an SMSF may have?

A.Four members

B.Six members

C.Five members

D.Ten members

Explanation: Section 17A defines an SMSF as a fund with no more than six members (the limit was increased from four). Auditors check membership against the deed and trustee appointments to confirm the fund still meets the SMSF definition throughout the year.

2An SMSF has individual trustees. Which structure is generally required for the fund to remain an SMSF?

A.Only one member needs to be a trustee if a licensed trustee company is also appointed

B.In a multi-member fund, any adult relative may be an extra trustee even if they are not a member

C.Each member must also be a trustee of the fund (subject to limited legal personal representative exceptions)

D.Trustees may be unrelated employees of the members' business only

Explanation: For an individual-trustee SMSF, section 17A generally requires each member to be a trustee, with limited exceptions such as a legal personal representative standing in for a member. Auditors evaluate trustee appointments against membership to confirm the fund structure remains compliant.

3An SMSF uses a corporate trustee. Which check best supports an opinion that the fund still meets the SMSF definition?

A.Confirming the company has at least three independent non-member directors

B.Confirming the corporate trustee also holds an Australian financial services licence

C.Confirming the company is listed on the ASX

D.Confirming every member is a director of the corporate trustee (subject to limited exceptions)

Explanation: Where a company is trustee, section 17A generally requires each member to be a director of that company, subject to limited legal personal representative exceptions. Checking the ASIC company extract against the member register is a core fund-structure audit procedure.

4During planning, an auditor finds an SMSF now has seven members after admitting a new member mid-year. What is the most appropriate initial compliance concern?

A.The fund may no longer meet the section 17A SMSF definition

B.The fund automatically becomes a public offer APRA-regulated fund with no further action

C.The auditor must resign immediately without documenting the issue

D.Member numbers are irrelevant provided benefits remain preserved

Explanation: Exceeding six members threatens the fund's status as an SMSF under section 17A. The auditor should evaluate evidence, consider trustee explanations and timing, and determine the implications for the compliance opinion and any reporting obligations.

5Which audit approach best evaluates whether an SMSF's trustee structure complied throughout the year?

A.Inspect trustee minutes, the trust deed, member register and company extracts only at year-end without testing mid-year changes

B.Obtain and compare membership, trustee or director appointments and changes across the year against section 17A requirements

C.Rely solely on a trustee verbal representation that 'everyone is a trustee'

D.Assume compliance if the prior-year auditor did not qualify Part B

Explanation: Fund structure can change during the year when members join or leave or when directors change. Auditors should test appointments and changes across the period, not only the year-end snapshot, before forming an opinion.

6Which statement best describes a trustee's duty to keep SMSF records under the SIS Act?

A.Trustees need to keep only bank statements for the current financial year

B.Trustees may discard minutes once the annual return is lodged

C.Trustees must keep minutes of meetings and records of changes of trustees for at least 10 years

D.Only the auditor is legally responsible for retaining fund records

Explanation: SIS sections 103 and 104 require trustees to keep minutes of meetings and records of changes of trustees for at least 10 years. Auditors identify and apply these retention rules when testing whether administration evidence supports a compliance conclusion.

7Section 35C of the SIS Act primarily concerns which trustee obligation relevant to the audit?

A.Paying the auditor's fee within seven days of engagement

B.Appointing a new auditor every three years

C.Publishing the financial statements on a public website

D.Providing the auditor with documents relevant to the audit of the fund

Explanation: Section 35C requires trustees to appoint an approved SMSF auditor and, when requested in writing, to give the auditor relevant documents (generally within 14 days). If trustees withhold key records, the auditor evaluates the impact on evidence, opinions and possible reporting.

8Section 104A generally requires which document from a new individual trustee or director of a corporate trustee?

A.A signed trustee declaration in the approved form

B.A statutory declaration that the fund will never invest in property

C.An AFSL authorisation for every trustee

D.A personal guarantee to the ATO for all tax liabilities

Explanation: Section 104A requires new individual trustees and directors of corporate trustees to sign a trustee declaration in the approved form. Auditors identify whether required declarations exist when evaluating administration compliance.

9Trustees refuse to provide title searches and loan agreements requested for an SMSF property audit. What should the auditor consider first?

A.Issue an unmodified opinion because refusal proves the assets do not exist

B.Evaluate whether the limitation prevents sufficient appropriate evidence and how that affects the opinion and reporting

C.Ignore the missing documents if bank balances reconcile

D.Automatically pass the issue because section 35C only applies to APRA funds

Explanation: Section 35C underpins the trustee duty to provide documents. A refusal is a scope limitation the auditor must evaluate against evidence standards, possible modified opinions, and reporting duties rather than ignoring it.

10Which evidence most directly supports compliance with trustee minute-keeping requirements?

A.An unsigned draft agenda emailed but never adopted

B.A verbal confirmation that meetings 'probably happened'

C.A complete set of signed trustee minutes covering decisions made during the year

D.The accountant's engagement letter alone

Explanation: Signed minutes are primary evidence that trustees kept required records of decisions. Draft agendas or verbal claims without adopted minutes are weak evidence when evaluating record-keeping compliance.

About the ASIC SMSF Auditor Competency Exam Exam

The ASIC SMSF auditor competency exam is required for registration as an approved SMSF auditor under the SIS Act. It assesses minimum competency to audit an SMSF's SIS Act compliance and financial statements. The published syllabus covers fund structure, administration, contributions, investment rules (including lending, in-house assets, acquisitions, borrowing, arm's length dealing, investment strategy, separation, valuation, sole purpose and collectables), payment standards, auditor reporting obligations, and financial statement audit topics such as independence, planning, evidence, experts, reporting, quality control and documentation.

Assessment

Computer-based multiple-choice exam delivered at invigilated ASL venues. Questions assess SIS Act compliance audit knowledge and financial statement audit knowledge against ASIC's published learning objectives. Candidates may bring unmarked copies of the SIS Act and Regulations; the exam is otherwise not open-book.

Time Limit

2 hours (120 minutes)

Passing Score

65%

Exam Fee

AUD $107 (non-refundable), payable when booking through the ASL portal. Prescribed under the Superannuation Auditor Registration Imposition Act 2012; confirm the current fee on the booking portal. (Australian Securities and Investments Commission (ASIC), delivered by Assessment Services Limited (ASL))

ASIC SMSF Auditor Competency Exam Exam Content Outline

Fund Structure

Section 17A SMSF definition and member/trustee structure audit checks.

Administration

Trustee records, section 35C documents for the auditor, and section 104A declarations.

Contributions

Regulation 7.04 contribution acceptance, return and allocation rules.

38%

Investment and Investment Transactions

Lending, in-house assets, acquisitions, borrowing, charges, arm's length dealing, strategy, separation, valuation, sole purpose and collectables.

Payment Standards

Part 6 SISR benefit payment and condition-of-release compliance.

Reporting Obligations

Auditor reporting to trustees and the ATO, including ACR considerations.

28%

Financial Statements Audit

Independence, planning, materiality, evidence, experts, reporting, quality control and documentation.

How to Pass the ASIC SMSF Auditor Competency Exam Exam

What You Need to Know

Passing score: 65%
Assessment: Computer-based multiple-choice exam delivered at invigilated ASL venues. Questions assess SIS Act compliance audit knowledge and financial statement audit knowledge against ASIC's published learning objectives. Candidates may bring unmarked copies of the SIS Act and Regulations; the exam is otherwise not open-book.
Time limit: 2 hours (120 minutes)
Exam fee: AUD $107 (non-refundable), payable when booking through the ASL portal. Prescribed under the Superannuation Auditor Registration Imposition Act 2012; confirm the current fee on the booking portal.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ASIC SMSF Auditor Competency Exam Study Tips from Top Performers

1Study the SIS Act and Regulations with ASIC's learning objectives beside you, because questions test application of specific provisions (for example sole purpose, in-house assets and borrowing) in audit scenarios rather than rote section numbers alone.

2Practise both Part A financial-statement thinking and Part B compliance thinking: many items ask what evidence you would gather, how you would evaluate a breach, and how you would report.

3Review GS 009, the Auditor Contravention Report instructions, and APES 110 independence rules, which ASIC lists among useful preparation materials for the exam.

Frequently Asked Questions

Who must sit the ASIC SMSF auditor competency exam?

Anyone who plans to register as an approved SMSF auditor with ASIC must pass the competency exam. Registration requirements are set out in Regulatory Guide 243. There is no prerequisite course of study for the exam itself; ASIC sets it on the basis that candidates already meet the minimum qualifications and experience for registration.

What is the pass mark, fee and time limit?

The required pass mark is 65%. The exam takes 2 hours and costs AUD $107 when booked through ASL (non-refundable). The fee is prescribed under the Superannuation Auditor Registration Imposition Act 2012; confirm the current amount on the ASL booking portal.

How many attempts am I allowed?

Under RG 243, you must pass a competency examination within the 12 months before you apply, and you may attempt the exam only twice in that period. If you have not passed, or you have failed more than once, you must provide a written submission explaining why ASIC should still consider your application under section 128B(2) of the SIS Act.

What topics does the exam cover?

Questions address ASIC's published learning objectives on SIS Act compliance (fund structure, administration, contributions, investments, payment standards and reporting) and on the financial statement audit (independence, planning, evidence, experts, reporting, quality control and documentation). Each question is also set in the context of tasks from ASIC's competency standards.