IK Audit, Assurance and Advisory, Southeast, Melbourne (2026)

15/06/2026

📅 AUDIT DEADLINES: TRUST ACCOUNTS & SPECIALIST AUDITS

Trust accounts remain one of the most important compliance areas for many businesses and professions.

✅ Real Estate Agency Trust Accounts (Victoria)
• Annual trust account audit
• Auditor’s report generally due within 3 months after the audit period

✅ Legal Practice Trust Accounts
• Annual trust account examination
• Generally due within 3 months of year-end

✅ Owners Corporations
• Audit requirements vary by state legislation and governing rules
• Often linked to AGM and annual reporting cycles

✅ AFSL Holders
• Financial and compliance audits in many circumstances
• Commonly due within 3–4 months of year-end

✅ APRA-Regulated Superannuation Funds
• Annual financial statement audit
• Reporting timetable determined by APRA and ASIC requirements

For auditors looking to grow their practice, trust account audits can offer recurring annual engagements and strong long-term client relationships.

Which audit niche do you see growing the most over the next five years?

Contact for more information

Email: [email protected]
Phone: 03 7036 3388
Website: ikaudit.com.au

15/06/2026

📅 AUDIT DEADLINES: CHARITIES & SMSFs

The not-for-profit and superannuation sectors have unique audit requirements that trustees and boards should keep front of mind.

✅ ACNC Registered Charities

Medium Charities
• Financial review or audit required

Large Charities
• Audit required by a Registered Company Auditor, audit firm, or authorised audit company

Deadline:
• Annual Information Statement (AIS) and financial reports due within 6 months of year-end
• For many charities with a 30 June year-end, this is typically 31 December

✅ Self-Managed Super Funds (SMSFs)

• Annual SMSF audit required
• Audit must be completed before the SMSF Annual Return is lodged

A common mistake is leaving audit preparation until the last minute. Early planning helps avoid delays and ensures a smoother lodgement process.

Contact for Audit Services
IK Audit, Assurance and Advisory
Email: [email protected]
Phone: 03 7036 3388
Website: ikaudit.com.au

⸻

15/06/2026

📅 AUDIT DEADLINES: CORPORATE ENTITIES IN AUSTRALIA

Many directors and finance teams don’t realise that audit planning should begin well before year-end. Missing reporting deadlines can create unnecessary compliance risks and pressure.

Key deadlines for audited corporate entities:

✅ Large Proprietary Companies
• Annual financial report audit
• ASIC lodgement within 4 months of year-end
• 30 June year-end: Due 31 October

✅ Public Companies
• Annual financial report audit
• ASIC lodgement within 4 months of year-end
• 30 June year-end: Due 31 October

✅ Disclosing Entities (Listed Companies)
• Annual audit and half-year review
• Annual report due within 3 months of year-end
• Half-year review due within 75 days of half-year end
• 30 June year-end: Annual report due 30 September

✅ Registered Managed Investment Schemes
• Annual financial report audit
• Generally due within 3 months of year-end

✅ Companies Limited by Guarantee (CLGs)
• Audit requirements depend on size and circumstances
• Generally due within 4 months of year-end

The most efficient audits are those planned early, not rushed at the reporting deadline.

10/06/2026

Estate Agencies: Is Your Trust Account Audit Due?

Trust account compliance is a critical responsibility for every real estate agency in Victoria. A properly conducted trust account audit not only satisfies regulatory requirements but also helps protect your business, reputation, and clients’ funds.

At IKAAA, we provide independent trust account audit services for real estate agencies, helping principals and directors meet their compliance obligations with confidence.

✅ Independent and professional audit service
✅ Practical approach with minimal disruption to your business
✅ Timely completion and clear communication
✅ Experience in audit and assurance engagements

If your agency requires a trust account audit or would like to discuss its trust account compliance obligations, feel free to reach out.

Contact us to discuss your requirements.

📞 03 7036 3388
📧 [email protected]

🌐 ikaudit.com.au

04/06/2026

What is the real objective of an audit of financial statements?

A quick question: What do you think is the primary objective of an external audit?
A) To detect fraud
B) To improve internal controls
C) To ensure the financial statements present a true and fair view of the entity's financial position and performance.
D) It's just a compliance tick-box exercise

Many people assume the answer is A or B. The correct answer is C.

An external audit provides independent assurance that the financial statements are prepared, in all material respects, in accordance with the applicable accounting framework and present a true and fair view of the entity's financial position and performance.

While auditors may identify fraud risks and control weaknesses during the audit process, these are not the primary objectives of the audit.

A quality audit helps build:
✅ Trust with stakeholders
✅ Confidence for investors and lenders
✅ Stronger governance and accountability
✅ Credibility for growth and funding opportunities

Audit is far more than a compliance exercise—it's about confidence, transparency, and trust. What would your answer have been before reading this post? Let us know in the comments.

📞 +61 3 7036 3388
🌐 ikaudit.com.au

03/06/2026

As financial year-end approaches, now is the time to ensure your organisation is prepared to meet its reporting and regulatory obligations.

At IK Audi, Assurance and Advisory, we help organisations navigate year-end requirements efficiently, supporting timely and high-quality financial reporting while minimising disruption to operations.

Beyond compliance, we work with organisations to identify control weaknesses, strengthen governance frameworks, and improve risk management practices—helping them build resilience and prepare for future challenges.

A well-planned audit is not just about meeting obligations; it's an opportunity to enhance controls, improve processes, and strengthen stakeholder confidence.

📞 +61 3 7036 3388
🌐 ikaudit.com.au

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01/06/2026

External Audit Checklist (Australia)

1. Engagement Acceptance and Continuance

Independence and Ethics

* Confirm compliance with APES 110 Code of Ethics.
* Evaluate independence threats and implement safeguards.
* Obtain annual independence declarations from engagement team members.
* Assess conflicts of interest.
* Confirm compliance with auditor rotation requirements (where applicable).

Client Acceptance and Continuance

* Assess management integrity and governance environment.
* Consider previous audit findings and unresolved matters.
* Evaluate engagement risk and firm competency.
* Determine whether preconditions for audit exist.
* Confirm engagement partner is a Registered Company Auditor (RCA) where required under the Corporations Act.

Engagement Documentation

* Issue and obtain signed engagement letter.
* Define audit scope, reporting framework, responsibilities, and fees.
* Determine whether an Engagement Quality Review (EQR) is required.
* Consider quality management requirements under ASQM 1, ASQM 2 and ASA 220.

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2. Audit Planning and Risk Assessment (ASA 300, ASA 315)

Understanding the Entity

* Understand business operations and ownership structure.
* Understand industry, regulatory and economic environment.
* Review prior year financial statements and audit files.
* Review budgets, forecasts and strategic plans.
* Understand governance arrangements and internal reporting processes.

Risk Assessment

* Identify risks of material misstatement at financial statement and assertion levels.
* Conduct fraud risk discussions within engagement team.
* Consider incentives, opportunities and rationalisation factors for fraud.
* Identify significant classes of transactions and account balances.
* Determine significant risks requiring special audit consideration.

Materiality

* Establish overall materiality.
* Establish performance materiality.
* Determine threshold for trivial misstatements.
* Document rationale and benchmarks used.

Related Parties (ASA 550)

* Obtain related party register.
* Review ASIC extracts and company records.
* Review director and key management interests.
* Examine board minutes for related party transactions.
* Identify undisclosed related party relationships and transactions.

⸻

3. Internal Controls and Information Technology

Internal Controls

* Document significant business processes.
* Evaluate design and implementation of key controls.
* Identify key controls over:
* Revenue
* Purchases and payables
* Payroll
* Inventory
* Cash management
* Financial reporting

Control Testing (Where Reliance Planned)

* Test operating effectiveness of controls.
* Evaluate control deficiencies.
* Assess impact on substantive procedures.

IT Environment

* Review user access controls.
* Review segregation of duties.
* Review system change management procedures.
* Review data backup and recovery procedures.
* Assess cybersecurity risks impacting financial reporting.

⸻

4. Fraud Procedures (ASA 240)

Management Override of Controls

* Test journal entries and adjustments.
* Review unusual manual journals.
* Assess accounting estimates for management bias.
* Evaluate significant unusual transactions.

Revenue Recognition

* Assess presumed fraud risk relating to revenue recognition.
* Document rebuttal if presumption is not applicable.
* Perform cut-off testing.
* Examine unusual revenue transactions near year-end.

⸻

5. Substantive Audit Procedures

Cash and Cash Equivalents

* Obtain independent bank confirmations.
* Reconcile bank accounts to general ledger.
* Review outstanding reconciling items.
* Review post-year-end bank transactions.
* Assess foreign currency balances.

Trade Receivables and Revenue

* Perform debtor confirmations.
* Review subsequent receipts.
* Test revenue cut-off.
* Review credit notes issued after year-end.
* Assess expected credit losses under AASB 9.
* Verify revenue recognition under AASB 15.

Inventory

* Attend stocktake where material.
* Observe stock count procedures.
* Perform test counts.
* Review inventory valuation.
* Assess net realisable value.
* Verify ownership and existence.
* Review obsolete and slow-moving inventory.

Property, Plant and Equipment

* Verify existence of significant assets.
* Test additions and disposals.
* Review supporting documentation.
* Assess depreciation methods and useful lives.
* Consider impairment indicators.

Leases (AASB 16)

* Obtain lease agreements.
* Verify right-of-use assets.
* Recalculate lease liabilities.
* Review discount rates applied.
* Verify lease disclosures.

Intangible Assets and Goodwill

* Verify ownership rights.
* Review amortisation calculations.
* Assess impairment indicators.
* Review cash-generating unit calculations.

Investments

* Confirm investment balances.
* Verify fair value calculations.
* Review valuation methodologies.
* Assess classification under AASB 9.

Accounts Payable and Accruals

* Perform supplier statement reconciliations.
* Test purchase cut-off.
* Search for unrecorded liabilities.
* Verify accrual calculations.

Payroll and Employee Benefits

* Test payroll transactions.
* Reconcile payroll records.
* Verify PAYG withholding obligations.
* Verify Superannuation Guarantee compliance.
* Review annual leave provisions.
* Review long service leave provisions.

Borrowings

* Obtain lender confirmations.
* Review loan agreements.
* Recalculate interest expense.
* Verify covenant compliance.
* Assess current/non-current classification.

Provisions

* Review legal correspondence.
* Assess warranty provisions.
* Assess make-good obligations.
* Assess litigation provisions.
* Review assumptions and estimates.

Equity

* Verify share capital movements.
* Review shareholder resolutions.
* Trace retained earnings movements.
* Review dividend declarations.

Taxation

* Reconcile taxable income to accounting profit.
* Review current tax calculations.
* Verify deferred tax balances under AASB 112.
* Review franking account balance.
* Assess uncertain tax positions.

6. Accounting Estimates and Judgements (ASA 540 Revised)

* Identify significant estimates.
* Review assumptions used by management.
* Assess estimation uncertainty.
* Develop independent expectations where appropriate.
* Consider management bias.
* Review sensitivity analyses.

Whether you’re a business owner, director, CFO, accountant, or finance professional, understanding your audit obligations is essential for strong governance, compliance, and stakeholder confidence.

For more insights on audits, financial reporting, compliance requirements, and best practices, visit ikaudit.com.au or contact our team for a confidential discussion about your audit and assurance needs.

🌐 ikaudit.com.au
📞 03 7036 3388

31/05/2026

Audit vs Review in Australia – Know the Difference

Not every financial report requires a full statutory audit. Understanding the difference between a Financial Review and a Financial Statement Audit is important for compliance, governance, and cost management.

Here’s a quick comparison:

🔍 Level of Assurance

• Audit: Provides reasonable assurance (high, but not absolute) that the financial report is free from material misstatement.

• Review: Provides limited assurance, resulting in a negative assurance conclusion.

📋 Procedures

• Audit: Involves detailed testing, evidence gathering, confirmations, inspections, and assessment of controls where relevant.

• Review: Primarily involves analytical procedures and inquiries of management, with substantially less testing than an audit.

📝 Reporting

• Audit: Auditor expresses an opinion on whether the financial report presents a true and fair view and complies with the applicable reporting framework.

• Review: Practitioner concludes that nothing has come to their attention that causes them to believe the financial report is materially misstated.

👤 Who Can Perform the Engagement?

• Audit: Must be conducted by an appropriately qualified auditor and, where required under the Corporations Act 2001, a Registered Company Auditor (RCA).

• Review: Must be conducted by an appropriately qualified and independent assurance practitioner. Statutory reviews may also require an RCA depending on the circumstances.

🏢 When Is Each Required?

• Audit: Commonly required for public companies, large proprietary companies, many not-for-profit entities, and entities subject to funding, regulatory, constitutional, or contractual requirements.

• Review: Available in certain circumstances under legislation or other reporting requirements and may be voluntarily obtained by entities seeking a lower level of assurance.

💰 Cost & Time

• Audit: Generally more comprehensive, time-consuming, and costly.

• Review: Generally faster and less costly due to the reduced scope of work.

Key takeaway: A review provides a lower level of assurance than an audit and may be appropriate where stakeholders require some independent assurance without the cost of a full audit. However, statutory requirements, governing documents, lender expectations, and stakeholder needs should always be considered before deciding between the two.

Need help determining whether your organisation requires an Audit or a Review?

Every entity’s circumstances are different, and the appropriate assurance engagement depends on factors such as legal requirements, stakeholder expectations, funding arrangements, and governance objectives.

If you’re unsure which option applies to your organisation—or if you require an independent Audit or Financial Review—we would be pleased to assist.

🌐 ikaudit.com.au
📞 03 7036 3388

Feel free to connect with us or reach out for a confidential discussion about your reporting and assurance requirements.

28/05/2026

Why do charities and NFPs need an audit?

Because trust is everything. 💙

For charities and community organisations, an independent audit is more than compliance — it’s confidence for your donors, board, and community.

✔ Builds trust & transparency
✔ Strengthens governance & controls
✔ Supports funding & long-term growth

In many cases, it’s also an ACNC requirement — but the real value goes far beyond ticking a box.

If your organisation manages public funds, an audit helps demonstrate they’re being used the right way.

📍 Supporting charities & NFPs across Southeast Melbourne & Victoria.

📞 Contact us: +61 3 7036 3388
🌐 ikaudit.com.au

IK Audit, Assurance and Advisory

15/06/2026

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