Class achieves industry first auditor assurance standard

February 22, 2021

Class is committed to simplifying the complex through automation and building products that not only saves our clients time but enables others in the SMSF service chain to complete their work far more quickly on accounts that are administered on Class.

Class builds solutions that remove the need for manual data entry, and does so through a range of mechanisms, including data feeds. This saves clients time by populating documents and reports with complex information – rapidly and automatically.

To further provide integrity around the process, Class has undertaken a Type 2 assurance review of the Class tax statement automation systems under the Auditing and Assurance Standards Board’s ASAE 3402 framework. This review examines the design and implementation of controls in the tax statement automation systems.

Class has already established its ASAE 3402 assurance engagement with data feeds, and now we’re doing the same with the tax statement process.

Class’ tax statement automation service sources distribution tax components from fund managers, ASX announcement data, share/unit registry providers and annual tax statements issued to investors by registries. Class verifies the sourced data by reconciling at least two independent sources of information, and the verified tax statement information is then used to create tax templates that is made available to clients. Class has also designed robust and effective controls around the system to ensure the accuracy and reliability of the tax statement service.

This report provides assurance to auditors that effective controls are in place to ensure that tax components for distributions have been captured accurately in the financial reports and tax returns by utilising the Class tax statement automation service.

This industry first development means that clients may not need to gather together a range of tax statements to send to the auditor as the auditor can reduce the need to manually review those tax statements. Class systems are trusted to be robust in capturing and verifying the information and an auditor can trust that process.

Auditors can use this report to reduce their substantive testing around distribution tax components when the financial report under audit has been prepared with Class, and the preparers have used the automated tax statement service.

This reduces the time taken to complete the financial audit as it reduces the need for the auditor to source each tax statement and complete a manual verification that the distribution tax components have been recorded correctly.

This initial ASAE 3402 Type 2 audit report for the tax statement automation system covers tax statements that have been issued from 1 July 2020 – 31 December 2020, effectively covering the FY20 lodgement period. This report is available for audits relating to the 2020 financial year.

Class is committed to continuing to find ways to save our clients time by simplifying the complex. We are constantly reimagining ways to create technology-led efficiencies across the full financial services ecosystem.

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