The end of the financial year has come and gone, and by now you should be well on track to getting your audit done. It is imperative that all AFS licensees make arrangements with their auditor to prepare their annual accounts and audit report and lodge these with ASIC by the required deadline. For more information on the steps you should take this audit period read on.

When to Lodge?

Lodgement dates for various types of entities differ; therefore, it is important that you know when your audit is required to be submitted to avoid potential breaches (which are reportable to ASIC) and late fees.

The lodgement dates are as follows:

  • If the entity holding the AFSL is a body corporate that is a disclosing entity: financial accounts are due within three months of 30 June (i.e.: 30 September).
  • If the entity holding the AFSL is a body corporate that is not a disclosing entity: financial accounts are due within four months of 30 June (i.e.: 31 October).

Prior to Lodgement

Directors should ensure they review all forms and documentation prior to submission. All information that you submit to ASIC must be accurate, including the information that has been prepared by your auditor.

It is particularly important that you double check the forms completed by your auditor and if you have any questions, consult with us or with your auditor to clarify as we have seen unfortunate instances where forms were not completed correctly and a breach notice had to be lodged several years later. ‘Audits – Lodgement and Correct Completion of forms in ASIC sights’.

What to Lodge?

As a first step, make sure your records are easily accessible as this will make the preparation for your audit quicker and simpler. It is important that you know and understand the documentation that needs to be submitted for your audit.

AFSL holders are required to provide ASIC with:

  • a profit and loss statement;
  • a balance sheet (attached to Form FS70); and
  • an auditor’s report (Form FS71).

Limited AFSLs

What if you hold a limited AFSL? Does the audit requirement apply? No, anyone who holds a limited AFSL and does not handle client money in connection with the provision of a financial service does not need to undertake an annual audit. Limited AFSL holders are required to submit an annual compliance certificate (Form FS76).

For more information refer to our blog articles ‘What documents are you required to submit for your AFSL Audit

Lodgement Time

The AFS Licensee Portal on the ASIC website allows all financial statements to be lodged online. If you haven’t already, you can register for online access via ASIC’s website.

Remember, the audit is a mechanism for ASIC to ensure AFSL holders are meeting their financial obligations. AFSL holders who fail to lodge annual financial statements can expect to be the subject of disciplinary action by ASIC and potentially have their AFSL revoked.

For further information on your obligations or for assistance with your audit, contact Sophie Grace today.

Ivana Josic

Ivana works with the Compliance and Legal Team with a particular focus on Marketing and Compliance. Ivana specialises in enhancing client relationships and supporting the Compliance and Legal Team. She assists clients with initial enquiries and ensures clients receive the latest regulatory updates through Sophie Grace social media channels, the monthly newsletter and the website blog page. She focuses on website development and management. Ivana also assists the Compliance and Legal Team in drafting documentation for clients.