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Cloud Accounting & SMSF Audit Software: The Latest Updates from Cloudoffis

Cloudoffis


Behind every great accounting practice is software that gets out of the way – and this quarter, we've been focused on making sure Cloudoffis does exactly that.

Welcome to the latest edition of Cloudoffis Pulse, your quarterly look at what's new across Workpapers Sorted, SMSF Auditomaion and SMSF Sorted.

It's been an exciting start to the year, and our product team has been heads-down building the tools you've asked for – from performance improvements that you'll feel every time you log in, to new features designed to take the friction out of your day-to-day workflow.

At Cloudoffis, our mission is to empower the accounting and auditing community with smarter, faster solutions. Everything we build starts with you – your feedback, your challenges, and the way you work. This quarter is no different.

There's a lot to cover, so let's get into it.

What’s happening in

Workpapers Sorted



Tax Sorted becomes Workpapers Sorted
We have updated the product name to Workpapers Sorted! This marks an exciting new chapter in our journey, the decision to rename Tax sorted was simple. We offer an extensive library of workpapers (not just Tax workpapers), and we wanted the name of our product to reflect what the product offers and will do in the future.

Improved Report Generation (Aspose Upgrade)

Workpapers Sorted

Our reporting engine has been upgraded using Aspose, resolving the issues some users previously experienced when generating reports. Report generation is now more stable, faster, and reliable.



Updated Workpaper Formats

Workpapers Sorted

Several workpaper formats have been refreshed and improved to enhance clarity, consistency, and ease of review, helping accountants prepare and review workpapers more efficiently.


Enhanced Relationship Chart

Workpapers Sorted



We’ve enhanced the much loved relationship chart, with new interactive capabilities and the ability to download the chart in different formats and views we know our users will love.

View client structures more clearly with interactive vertical and horizontal views — and download the relationship chart when you need it for reviews or client discussions.

Smarter & More Flexible Job Report Package Generation

Workpapers Sorted


Job Report Package generation has received a major upgrade, giving users greater flexibility and control:

  • Clear visibility into the Job Report Package generation process
  • Easy access to previously generated Job Report Packages
  • Ability to generate Job Report Packages in both PDF and Excel formats
  • Flexible options to save Job Report Packages to the Local Drive or directly into the FYI Portal
  • Improved control over regenerating Job Report Packages when required

Upcoming Release – 24 March 2026

Our upcoming release will introduce the following enhancements:

  • BAS, IAS, and FBT Job Types – Accountants will be able to manage additional compliance work directly within Workpapers Sorted, keeping more work in one platform.
  • Save Filter & Personalised Views – Users will be able to apply filters on the client screen and customise column views within jobs. The system will remember these preferences automatically and save them for future use unless the user chooses to reset them.


What’s happening in

Workpapers Sorted


Optimised User Experience

Our team has been hard at work behind the scenes on SMSF Auditomation, making substantial improvements to the performance and efficiency of our servers and software. While these changes may not always be visible on the surface, the impact is something you'll feel every time you use the platform. Think faster load times, smoother navigation, and a more reliable experience from start to finish.

We're committed to continuously refining the foundation of SMSF Auditomation so that the tools you rely on every day work harder for you.

Also in case you missed our amazing new customer story – Read about Super Green Tick and how they grew their practice by 50% using SMSF Auditomation.

Read their story



What’s new in

Workpapers Sorted


The value of SMSF Sorted was almost immediate. It was a no-brainer for the team.

Improved Document Upload Experience in Sorted Lite

Workpapers Sorted


Uploading documents from Class DMS just got more powerful. Users can now easily filter documents using tags created in Class DMS, making it quicker and simpler to find exactly what they need. This enhancement brings greater flexibility and control to Sorted Lite, helping streamline your document management experience.

Click here for more information.

If you’re using Sorted Lite, or haven’t tried our products yet, discover how this firm went from manual Workpapers to Cloud Automation


Read their story


Are you to grow with Cloudoffis?

Whether your practice specialises in auditing or offers a full suite of accounting and advisory services, Cloudoffis has you covered with streamlined workpapers and workflows. Cloudoffis is here to help keep your practice running smoothly.

– Quick Setup – Get started in minutes

– Flexible Platform – Work the way you want with adaptable features and integrations

– AI, Cloud-Based Technology – Delivering efficiencies and compliance at scale

– Flexible Pricing & Unlimited Users – No lock in contracts

– Free Onboarding & Ongoing Training – Onboard your team effortlessly with expert guidance and continuous support at no extra cost

– Tailored Solutions – Our agile team adapts to your unique business needs to ensure your success


Built with Accountants, for Accountants

Purpose-built tools shaped by real feedback from firms like yours—no unnecessary extras, no one-size-fits-all templates. Just what your team actually needs to standardise processes, operationalise efficiency, and feel supported every step of the way.

Where Support Flows

Cloudoffis

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From Manual Workpapers to Cloud Automation: How ERY Modernised 20 Years of Practice

Cloudoffis

Summary

The Business: ERY. It is a Sydney based firm of dedicated professionals who provide a complete range of public accounting and taxation services to individuals, SMSF’s and businesses.

Products: SMSF Sorted & Workpapers Sorted

Industry: Accounting & SMSF

Role Interviewed: Larry Reisen, Partner

Cloudoffis Customer: 1 Year

Key Results:

  • Significant reduction in auditor queries using SMSF Sorted
  • Seamless setup with minimal effort from the team
  • Instant visibility and improved internal communication
  • Strong trust in the Cloudoffis team and product development

Background:

After more than 20 years in practice, the owners of ERY, a boutique accounting firm undertook a strategic modernization program following their transition to joint ownership three years ago. Their goal was to move toward best-practice systems, reduce inefficiencies, and future-proof the business through cloud-based technology.

In July 2025, the firm adopted SMSF Sorted and Workpapers Sorted as part of this transformation. While SMSF Sorted delivered immediate efficiency gains—particularly through streamlined auditor collaboration and reduced query volume – Workpapers Sorted represents a larger operational shift that is expected to be fully integrated over a 12-month period.

The Challenge: Legacy Processes

ERY has a strong client base in accounting and SMSF services. Approximately three years ago, the current two partners took ownership and initiated a strategic review of operations. Their vision was clear: modernize the firm, simplify workflows, and move toward best practice, without overcomplicating life for their small team.

A Turning Point: Rethinking Systems

Modernisation began with a broad reassessment of the firm’s technology stack. The partners transitioned to Xero for practice management, allowing them to work primarily within a browser-based environment. That shift alone reduced friction and aligned the firm with the cloud-first direction.

At the same time, they began searching for better solutions for workpapers and SMSF processing. For years, SMSF jobs had been completed entirely in Excel. Once finished, files were converted to PDFs and sent to the auditor. Queries would come back via email, and tracking them relied largely on memory, inbox management, and informal follow-up.

The process worked—but it was reactive and inefficient.

Larry had prior exposure to SMSF Auditomation and was familiar with the broader ecosystem developed by Cloudoffis. Seven or eight months before implementation, he revisited their products and saw something different.

SMSF Sorted has matured significantly since its early release. It now offers structured SMSF workflows that fit naturally into their processes. At the same time, Workpapers Sorted presented what Larry described as a “happy medium”—providing ready-made checklists and templates without demanding heavy customization or administrative burden. That balance was critical.

“As a small firm, they needed something that worked off the shelf.”

Immediate Impact: SMSF Sorted Changes the Dynamic

The value of SMSF Sorted was almost immediate. It was a no-brainer for the team.

“We saw value from SMSF Sorted almost immediately.”

Around the same time, the firm had changed auditors. Their new auditor also used Cloudoffis for SMSF Auditomation. With full adoption of SMSF Sorted, the process became structured and intentional.

“Moving to a new auditor was a turning point — and having systems that aligned made all the difference.”

Instead of uploading a collection of PDFs and hoping the auditor could make sense of them, documents were now provided correctly referenced within a defined workflow. The most noticeable outcome was the reduction in auditor queries. What had once been a back-and-forth cycle became a streamlined, collaborative process.

ERY’s internal workflow was also streamlined. Queries could now be raised against specific line items, easily tracked, and marked as completed. Anyone in the team could open a file and immediately understand what remained outstanding.

For ERY, this confirmed they had made the right decision in investing in Cloudoffis.

A Bigger Shift: Embedding workpapers

If SMSF Sorted delivered quick wins, Workpapers Sorted represents a deeper transformation.

Unlike SMSF Sorted — which largely enhances existing processes – Workpapers Sorted changes how the firm structures and documents its engagements. At the same time as implementing Workpapers Sorted, the firm was also onboarding with Xero. The combined change required patience.

ERY knew they needed a solution, but the challenge was finding the right one. While many options in market, the issue was that many were quite rigid or required a lot of implementation.

“It’s a happy medium — structured enough to guide us, flexible enough to adapt to our needs. It didn’t require a lot of input for us to set it up”

The partners are realistic about the timeline. While they are only in the early stages of using Workpapers Sorted, the partners are confident in their choice. They already see its potential.

One feature they value highly is the ability to roll forward notes into new workpapers. In a profession where many engagements are similar year to year, this eliminates the need to reopen prior files and reconstruct documentation from scratch. Over time, that alone is expected to generate significant efficiency gains.

The firm has not yet fully customised its templates and checklists, largely due to competing priorities but is impressed by what they can do. The Cloudoffis team has offered support in embedding merge fields and assisting with setup when the firm is ready which is why ERY see Cloudoffis as their one stop solution for accounting tech.


Building Trust Through Partnership

What stands out most in this case is not just the software, but the relationship. Larry found their experience with Cloudoffis to be exceptionally accessible.

“You don’t often get two hours with the head of product and a developer talking through your real workflow problems. That was really impressive for having trust in the company – that there is this mission to continue to improve”

● Support is quick

● Feedback is heard

● Product leaders are reachable

In one instance, the Director of Product Development for Workpapers Sorted spent two hours discussing the firm’s workflow challenges and potential improvements. Larry also met the founders of Cloudoffis, Viral and Manish and was struck by their passion for building a great product.

This responsiveness has created a high level of trust.

They are confident that the workpaper process will eventually reach peak efficiency within the firm, even though it is still in an evolving state. That confidence is rooted in the fact that Cloudoffis has a track record of innovation and willingness to adapt based on client input. Cloudoffis builds with their customers.

“They actually listen — and you can see the innovation happening.”

The Next Phase: Integration and Unification

As accounting technology continually evolves, modernisation remains a constant, ongoing process.

Their broader ambition is to eliminate silos across their technology stack, which includes Xero, Class, NowInfinity, ATO Mate, Cloudoffis products, and SuiteFiles. Data duplication and fragmented workflows remain challenges they want to solve.

Looking Ahead

A few years into ownership, Larry has moved decisively towards a modern, browser-based practice. SMSF Sorted has already reshaped their SMSF workflow and auditor collaboration. Workpapers Sorted is still evolving, but its long-term value is clear.

Their journey reflects a broader truth for small firms: modernisation is not a single event, but a staged evolution. Quick wins build momentum. Larger transformations require patience. And perhaps most importantly, the right technology partner makes the process sustainable.

What sets Cloudoffis Apart?

Cloudoffis makes preparation, approvals and compliance easy with AI-powered workpapers. As Australia’s leading SaaS provider in the SMSF industry, we bring over 10 years of unparalleled experience.

Pioneers in our field, we take pride in supporting the accounting and auditing community to streamline their workflows and work more efficiently through SMSF Sorted, SMSF Auditomation and Workpapers Sorted.

If you’re a firm looking to automate your SMSF audit process today, you can learn more about SMSF Sorted or Workpapers Sorted here.

You can book a demo with a Cloudoffis expert here.


Cloudoffis Audit Automation

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Cloudoffis launches
Workpapers Sorted, unveiling expanded AI-powered functionality

Sydney, 12 March 2026:

Cloudoffis, Australia’s leading cloud-based technology provider for accounting and SMSF advisory firms, has today officially launched Workpapers Sorted, an evolution of its flagship workpapers platform formerly known as Tax Sorted, bringing the product’s scope, capability and AI-driven innovation to new markets.

This evolution reflects the platform’s expansion beyond tax-specific workflows into a comprehensive, AI-powered workpapers solution designed to standardise processes, improve compliance and streamline accounting and advisory operations.

Originally introduced to address inefficiencies in tax workpapers, the platform has rapidly evolved into a broader ecosystem that integrates deeply with Xero, Microsoft Excel, FYI, DocuSign and the ATO to support firms across a wide range of accounting and compliance workflows.

John Munden, Chief Strategy Officer at Cloudoffis, said the launch represents the next chapter in the company’s product strategy.

“When we first brought Tax Sorted to market, our focus was solving inefficiencies in tax workpapers. Since then, the platform has evolved well beyond that initial use case,” Munden said.”

“Workpapers Sorted reflects the reality of what the product delivers today – an AI-powered workpapers ecosystem that integrates multiple data sources, automates manual processes and gives firms greater visibility across entities and group structures.”

“This isn’t simply a name change – it’s an evolution of where we envision the product going. It signals the innovation happening within the platform and our ambition to support practices with smarter, more connected workflows.”

The launch of Workpapers Sorted coincides with a series of major product enhancements that underscore Cloudoffis’ continued investment in innovation.

Recent updates include:

  • Client Tax History at a Glance – a new “Lodged as per ATO” column within Job Financial Reports, displaying four years of lodged income tax return data in a single view to support more accurate preparation and review.
  • Improved FYI document upload experience – enhanced file-type visibility within the FYI document screen, making it easier for teams to identify and upload the correct supporting documentation.
  • Enhanced workpapers library – improvements to calculation reliability and the addition of new templates including Accounts Receivable, Accounts Payable and Depreciation Schedule (as per accounts).

Further innovations rolling out in the coming months include:

  • A redesigned PDF workpaper package format focused on readability and review efficiency during finalisation.
  • An Excel-style file viewer within the document section, allowing spreadsheets to open in their native format rather than converting to PDF.
  • Continued enhancements to workflow automation and reporting modules.

Workpapers Sorted uses AI to automate data ingestion from supporting documents, Xero files and ATO information, reducing manual entry and improving accuracy. Users can refresh client data with a click, generate real-time trial balance, balance sheet, profit and loss and general ledger reports, and post journals back to client files directly within the platform.

Existing customers will experience no disruption to service, pricing or integrations. Login credentials and current integrations remain unchanged, with the updated name and branding now live across the product, website, support documentation and partner marketplaces.

“The firms that shaped this product were with us from the beginning. They came on the journey, gave us feedback, and we built it. Most of our clients have been with us for more than four years, and harnessing those relationships is how Workpapers Sorted was made – and it’s how we’ll keep developing it.

“There are other solutions in the market that aim to remove humans from the process entirely. That’s not what we’re about. We’re focused on being a human business – one where AI accelerates the work, but the judgement, the relationships and the expertise always stay with the people,” Munden said.

“Our priority has been ensuring a seamless transition, and Cloudoffis will continue to provide the same support and innovative technology our customers rely on. Firms can continue using the platform exactly as they do today – with the added benefit of ongoing feature releases designed to standardise workflows, strengthen compliance and improve efficiency across their practice.”

The launch of Workpapers Sorted reinforces Cloudoffis’ commitment to delivering practical, AI-driven solutions that help accounting and advisory firms focus on higher-value client work.

For more information, please visit: https://cloudoffis.com.au.

ENDS

About Cloudoffis

Cloudoffis is a cloud-based technology provider for accounting and advisory firms in Australia, delivering AI-powered workpapers and workflow solutions that improve standardisation, efficiency and compliance. By integrating with leading platforms including Xero, Microsoft Excel, FYI and the ATO, Cloudoffis helps practices eliminate manual processes and focus on higher-value client work.

For further information or to arrange interviews, please contact:
Jasmine Turvey – Reverb Media
E: jasmine@reverb-media.com.au
P: 0437 620 320

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How Super Green Tick grew 50% using SMSF Auditomation by Cloudoffis

How Super Green Tick grew 50% using SMSF Auditomation by Cloudoffis

Summary

The Business: Super Green Tick

Product: SMSF Auditomation

Industry: SMSF Auditing

Role Interviewed: Peter Gallagher, Director

Cloudoffis Customer: 7 Years

Key Result: 50% business growth with no increase in staff

Super Green Tick is a specialist SMSF auditing firm dedicated to providing high-quality, professional SMSF audit services to accounting firms and SMSF administrators.

The Challenge: Scaling an Audit firm without adding complexity

As a specialist SMSF audit firm, Super Green Tick’s success depends on efficiency, consistency, and confidence in their processes. Director Peter Gallagher, with a background spanning Big Four auditing and finance director roles, was focused on one thing: building a scalable audit operation.

Before adopting Cloudoffis, the firm relied on largely manual processes. In 2015, Gallagher introduced a cloud-based workpaper solution to move away from paper files, but it came
with limitations.

“Approximately half of our audits still required manual work because the software only worked with certain platforms.”

Managing multiple processes depending on the client’s software stack created inefficiencies in training, reporting, and quality control — all barriers to growth.


Searching for a better way

After using their existing software for 2 years, it became clear that the platform was not delivering any efficiency. Peter was back in the market for a new solution, unfortunately there were not many SMSF Audit software options available – only 2 to 3 in the market. Then, Cloudoffis reached out to Peter to showcase SMSF Auditomation.

After seeing a demonstration and speaking with the team, Super Green Tick saw a lot of potential and personally loved Cloudoffis’s commitment to investing in growing the product and working with customers to ensure we meet their requirements.

Cloudoffis offered everything their current solution provided – but added automation and observation reporting, which fundamentally changed how audits were performed for the business.

“It gave us all the functionality we already had, plus automation that actually made a difference.”

Implementation of SMSF Auditomation was a seamless experience for their team, Peter highlighted that it was a simple process and the team were up and running quickly. It felt intuitive, much like an iphone. It just makes sense.

“By digitising you reduce paper, you can find things easier due to search functionality etc and you just don’t need to be scared of it – Cloudoffis is like using an Apple iphone, it’s pretty intuitive – not all products are but Cloudoffis is.”


The Solution: One Platform, One Consistent Process

Super Green Tick transitioned fully to Cloudoffis within two years, ultimately deciding to run 100% of their audits through a single, consistent workflow, even when some clients weren’t yet fully automated. This is when they saw a huge impact on their business.

“Having multiple processes just wasn’t efficient — for staff training, reporting, or quality control. We wanted one way of doing things.”

As their client base increasingly adopted BGL 360, automation accelerated. What was once a 60/40 split between automated and traditional audits is now closer to 90% automated.

Some of the features that really drove impact for Super Green Tick were observation reporting, automated workflows, and the reporting templates which only got better over time as Cloudoffis evolved the product. Peter describes this evolution as the “beginnings of AI,” laying the groundwork for even greater efficiency.

SMSF Auditomation’s reporting automation proved especially valuable, automatically selecting appropriate report types and managing common audit issues.

Audit


The impact: Growth without the headaches

The impact on productivity was clear and measurable. Super Green Tick were able to grow the firm without having to invest in additional headcount.

Results achieved using SMSF Auditomation:

  • 50% business growth with the same staffing level
  • Significant reduction in audit time through exception-based reviews
  • Increased confidence in audit quality and consistency
  • Improved staff collaboration through a single, clear process

Since implementing Cloudoffis, Super Green Tick has seen their audit turnaround time drastically reduced from 3-5 days to a consistent 1.5 days. This improvement has led to a better client experience, with Super Green Tick receiving positive feedback that their turnaround times are now well above client expectations.

‘’Communication with clients has also improved because we have reduced email interaction and there by ensure all issues are captured and reviewed prior to sign off.’’

Another meaningful impact is that using Cloudoffis has also strengthened regulatory confidence for the firm. In 2025, they were audited by the ATO – this can be a stressful procedure for many firms. However, with Cloudoffis on their side – this was not the case.

“When the ATO audited us and we mentioned Cloudoffis, there were no further questions about our software. They were comfortable with the process and moved on.”



Advice for Firms Digitising Their Audit Process

For firms considering digitisation, Gallagher offers clear guidance:

  1. Implement the full workflow from day one — and make the business fit the software. You will get the benefits much sooner this way.
  2. Tailor your audit program templates to your specific risk profile. Take the time to invest in the comments.
  3. Prepare templates for common issues and reports to save time in the back end.

“Observation reporting alone changes everything. You stop sifting through documents and start focusing on what actually matters.”

If you’re a firm looking to automate your SMSF audit process today, you can learn more about SMSF Auditomation here.

You can book a demo with a Cloudoffis expert here.

Audit

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SMSF Insights with Graeme Colley - A Q&A

Read the latest Q&A with Graeme Colley, a respected educator, policy advisor, and technical expert with over 30 years’ experience in taxation and superannuation.

Is the average of SMSF members/trustees increasing?

Based on the information compiled by the ATO from SMSF Annual Returns, there is a slight variation in the age of members/trustees at the time the SMSF is established. The latest statistics compiled from the 2019-20 to 2023-24 SMSF Annual Returns show that the median and average member age in the year an SMSF is established is between ages 46 and 47. However, the average and median age of all members is around age 62.

There appears to be a decrease in the proportion of individuals establishing SMSFs who are aged under 35 and between 55 and 59. There is an increase in the proportion of individuals establishing funds who are aged between 35 and 54.

Age ranges of SMSF members as at 30 June 2025

The following table, published by the ATO and based on data compiled by the
Australian Business Register, shows:

  • The approximate age distribution of SMSF members at 30 June 2025
  • The age distribution of members of SMSFs established in each income year from 2019-20 to 2023-24

The main points of the data are:

  • As at 30 June 2024, both the average age and the median age for all SMSF members were 62 years
  • The median age of SMSF members of newly established funds in 2023-24 was 46 years
Age distribution of all SMSF members at June 2024, and members by the establishment year of the SMSF

Age Distribution of All SMSF Members at June 2024, and Members by Establishment Year of the SMSF

Age Range All Members 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20
< 25 0.6% 1.2% 1.4% 1.4% 1.4% 1.7%
25 – 34 2.7% 8.5% 8.2% 9.9% 9.9% 12.2%
35 – 44 12.2% 35.6% 33.4% 35.0% 34.1% 32.8%
45 – 49 9.5% 18.1% 17.6% 17.7% 18.5% 17.7%
50 – 54 11.9% 15.9% 16.6% 15.6% 15.6% 14.8%
55 – 59 12.3% 10.8% 11.8% 10.8% 11.2% 11.1%
60 – 64 12.6% 6.0% 6.5% 5.8% 5.8% 5.8%
65 – 69 11.5% 2.6% 2.9% 2.5% 2.3% 2.5%
70 – 74 10.0% 1.0% 1.2% 0.9% 0.8% 1.0%
75 – 84 13.7% 0.4% 0.5% 0.4% 0.3% 0.4%
85+ 3.0% <0.1% <0.1% <0.1% <0.1% <0.1%
Total 100% 100% 100% 100% 100% 100%
Average member age 62.0 47.0 47.4 46.5 46.6 46.2
Median member age 62.4 46.2 47.0 46.0 46.2 46.0

Source: ATO SMSF Annual Overview 2023-24 Self Managed Superannuation Funds
Updated 17/12/2025

Members of SMSFs as at the end of June 2025

The following table contains the age distribution of individuals who were members of SMSFs as at the end of June 2025 and is based on Australian Business Register (ABR) data.

Table 6: Members, by Gender and Age Range
Age ranges Male Female Total
< 25 0.6% 0.6% 0.6%
25–34 2.7% 2.8% 2.7%
35–44 11.8% 12.7% 12.2%
45–49 9.5% 9.5% 9.5%
50–54 11.7% 12.1% 11.9%
55–59 12.1% 12.5% 12.3%
60–64 12.5% 12.7% 12.6%
65–69 11.4% 11.6% 11.5%
70–74 10.0% 10.1% 10.0%
75–84 14.3% 13.0% 13.7%
85+ 3.5% 2.4% 3.0%
Total 100% 100% 100%
All ages 52.7% 47.3% 100%

Source: ATO SMSF Quarterly Statistical Report – September 2025
Self Managed Superannuation Funds – Updated 17/12/2025

If the fund owns real estate, is the auditor required to obtain a title search each year indicating its ownership and whether it is encumbered. Is there an alternative?

Both the ATO and the Administrative Review Tribunal consider it is necessary that a title search be undertaken each year to satisfy the requirements of the Superannuation Industry Supervision Act (SIS Act). The search is required to establish that the trustees have met the requirements of section 65 of the SIS Act and regulations 4.09A and 13.14 of the SIS regulations.

The reason for requiring the title search each year are:

Section 65: loans or financial assistance to members

To check whether the fund has met the requirements of section 65, the auditor
must be satisfied that the fund has not lent money or provided financial
assistance to members and relatives. This requires the auditor to:

  • Examine bank statements and obtain explanations from trustees about any
    unusual transactions, including transfers of money to members or relatives
  • Check details of all loans by the fund, including the parties to the loan,
    loan term, interest and repayments
  • Check any transactions with related parties to determine whether members
    or relatives have received financial assistance
  • Review the ownership of fund assets to ensure the investment is owned by
    the fund and that no charge or other form of security has been taken over
    any of the SMSF’s assets to secure a member’s or relative’s personal borrowing

Whether the fund’s assets have been used to secure borrowing can only be
determined by a title search or other independent verification.

Regulation 4.09A: separation of assets

To determine whether the fund’s money and assets are held separately from money and assets held personally by the trustees or a standard employer-sponsor the auditor should:

  • sight asset ownership documents, including bank statements, to verify SMSF assets are held in the name of trustees on behalf of the fund (for example, R & J Smith as trustees for the Smith SMSF or R Smith Pty Ltd as trustee for the Smith SMSF)
  • scheck for alternative documentation that protects the fund’s assets (for example, a valid declaration of trust or title documents) where State law prevents ownership in the name of the SMSF
  • sreview transactions on bank statements to ensure fund money is not mixed with money belonging to related parties of the SMSF.
Regulation 13.14: charges over assets

The auditor needs to check that the fund has complied with regulation 13.14 to confirm that the trustees have not given a charge over or in relation to a fund asset by obtaining:

  • written representations from the trustees
  • annual property title searches for real properties
  • searches of the Personal Property Securities Register External Link for interests registered by other parties against SMSF assets.

Where there has been a change in trustees, the auditor should obtain evidence that the ownership of asset documents reflect the change.

An update on Court and Tribunal Decisions

Reviews by regulators and the courts in recent years show that proper documentation is essential. One case is the Administrative Review Tribunal decision in Murphy v ASIC [2025] ARTA 75 (6 February 2025).

In the case, the ATO reviewed the audit files of Mr Murphy which were referred to ASIC because of various auditing and independence breaches. One of the fund’s audited showed

● no evidence of the ownership of a property in Victoria as no title search was undertaken for for the relevant year(s),

● failed to determine whether a borrowing complied with s67 of the SIS Act – trustees were concerned about compliance, and

● deficiencies in the audit engagement letter issued by Mr Murphy for the audit which resulted in the trustees being concerned about compliance.

The Tribunal confirmed the ASIC decision to disqualify Mr Murphy’s registration as an SMSF auditor.

Given the rules surrounding non-arm’s length income (NALI) , if someone processes their own SMSF by using the firm’s software which is not material to the firm, what are the consequences?

The answer to this question can be found in the finalised version of Law Companion Ruling LCR 2021/2 which was published in September 2025. The ruling clarifies how the non-arm’s length provisions of the tax law work for non-arm’s length expenditure incurred by an SMSF.

Example 2 at paragraphs 24 to 26 of the ruling is about Mikasa who is a trustee of her SMSF and a partner in an accounting firm. She engages her firm to provide accounting services for the SMSF which include administration services for the fund. The firm does not charge for the services it provides and as a result they are considered to be non-arm’s length dealings between the firm and the fund trustee. In view of this the ATO’s opinion is that a penalty applies to the non-arm’s length income for purposes of section 295-550 of the SIS Act. The penalty is equal to twice the difference between the amount of the expense that might have been incurred has the parties been dealing at arm’s length and the amount of the expense incurred by the fund.

There is an exception to this in Paragraph 51 of the ruling where a staff discount policy applies and the fund is entitled to a discount which is provided to all employees, partners, shareholders or office holders and it is consistent with normal commercial practices.

With an increase in the number of SMSF auditors being disqualified, what should I do? How can technology help me?

This question is not easy to answer as we do not know about your situation. However, provided you are meeting the ATO’s compliance audit requirements and the professional audit standards then you should not have any issues to be concerned with. You may like to contact your professional association to see whether they have a review service which can let you know whether you meet the relevant audit requirements.

It’s important to look at your overall audit process and where you can create more efficiencies and avoid any compliance issues. There are many platforms that allow you to streamline this process. SMSF Auditomation, by Cloudoffis allows you to streamline your process and ensure you are audit ready.

If you’d like to speak to one of the Cloudoffis experts, you can reach out here.

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Understanding Division 296 from what we know by Graeme Colley

Introduction:

Graeme Colley, who is a well-known expert in SMSFs and the Cloudoffis Independent Consultant, has provided an update on the latest developments for Div 296.

Understanding Division 296 from what we know

The reworked Division 296 legislation, Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026, finally made it to parliament in February this year after going through many changes since it was announced in the 2023-24 Federal Budget. The main changes in the bill are a move away from taxing unrealised capital gains and the indexation of the thresholds. There are a number of other important changes that have taken place and should be understood if the legislation finally makes it into law.

The current bill continues to reduce superannuation tax breaks for anyone with a total super balance of more than $3 million and places an additional impost on those with balances of more than $10 million. An individual’s realised fund earnings from 1 July 2026 is taxed if their total super balance for Division 296 purposes is above the relevant threshold.

The main features of the bill are:

  • The legislation is proposed to commence on 1 July 2026 rather than 1 July 2025 as originally proposed.
  • For anyone with a superannuation balance of $3 million or more the tax will be a maximum of 15% of the realised income for the relevant financial year. If a person has a superannuation balance of $10 million or more there is an additional impost of 10% on the realised income.
  • The realised income is based on income tax principles rather than the concept in the original proposal which taxed the difference between the individual’s opening and closing superannuation balances for the year. It is calculated at the fund level and an amount is attributed to the relevant member. For an SMSF it is expected an actuary will make the calculation.
  • Trustees of SMSFs will have the option of resetting the cost base of the fund’s investments as at 30 June 2026 to recognise the level of accrued value in the investment to that time. The option is only available on all of the fund’s investments and applies only for purposes of Div 296.
  • The calculation of Div 296 tax consists of three stages:

    • Stage 1 – Percentage formula (s 296-40(2))
    • Stage 2 – Div 296 fund earnings (s 296-45(2))
    • Stage 3 – Taxable superannuation earnings (s 296-40(1))
  • Division 296 tax is levied on the individual who has the option of paying the tax from their own resources or having the superannuation fund pay the liability.

Stage 1 – the percentage formula

The percentage formula determines the proportion of a person’s balance that is above each of the thresholds. There is one formula for calculating the proportion above $3 million and another which calculates the proportion of a person’s balance above $10 million.

The formula that applies where the person’s total superannuation balance is at least $3 million is:

Where:

The total superannuation balance reference amount is the greater of a person’s total superannuation balance (if any):

• just before the start of the year; and

• at the end of the year.

The large superannuation balance threshold is $3 million (or indexed threshold) for the year.

Note: for the 2026-27 financial year (the first year of operation) the year end figure will be used in the calculation.

The examples of Judi and Brad illustrate how Division 296 tax will be calculated for someone who has a total superannuation balance of greater than $3 million in the case of Judi and in the case of Brad, $10 million.

Example

Judi has a Total Superannuation Balance (TSB) of $4 million on 30 June 2027 and a TSB of $3.5 million on 30 June 2026. Her total superannuation fund earnings for the year is $100,000 which means she will have a tax liability for Division 296 purposes.

As Judi’s TSB on 30 June 2027 is $4 million it will be used to calculate the percentage of her TSB that is over and above her large superannuation balance.

The proportion of Judi’s TSB above the $3 million threshold is 25% which is calculated as:

Total Superannuation Balance above $10 million

The second formula which is used to calculate the additional tax impost on TSBs above $10 million is:

Where:
The total superannuation balance reference amount is the greater of a person’s total superannuation balance (if any):

• just before the start of the year; and

• at the end of the year.

The very large superannuation balance threshold is $10 million (or indexed threshold) for the year.

Note: for the 2026-27 financial year (the first year of operation) the year end figure will be used in the calculation.

Example

Brad has a TSB of $12 million as at 30 June 2027 and a TSB of $10.5 million on 30 June 2026. His total superannuation fund earnings for the year is $1,000,000 which means he will have a tax liability for Division 296 purposes. As Brad’s TSB is greater than the very large superannuation balance of $10 million he will be required to pay additional tax.

The proportion of Brad’s TSB above the $3 million threshold is 75% which is calculated as:

The proportion of Brad’s TSB which is above the $10 million threshold is 16.67% which is calculated as:

Stage 2 – Div 296 Fund earnings

Stage 2 determines the fund earnings for Division 296 purposes which is calculated at the fund level not the member level. Once the fund earnings has been determined a further calculation is made to work out the amount of fund earnings that applies to the member. At this stage (as at 19 February 2026) the method used to calculate the member amount is not available as it will be included in the regulations if the bill becomes law.

The formula to determine the fund earnings is:

Where:

Relevant taxable income or loss is the fund’s taxable income for the year,

Assessable contributions are the taxable contributions included in the fund’s income for the year,

Net exempt current pension income is the fund’s exempt income less the total deductions if the exempt income was assessable income.

The entity’s non-arm’s length component for the year (if any) is the amount of income that is taxed as NALI by the fund.

Pooled superannuation trust component applies if the fund has an investment in such a trust.

Example – Judi

Using the example of Judi above the fund’s taxable income is $350,000, assessable contributions claimed by the fund are $60,000 and the fund’s net current pension income less expenses is $310,000. The fund does not have any non-arm’s length component or investments in a pooled superannuation trust. Therefore the fund earnings for Division 296 purposes is $600,000. It is determined by an actuary (as proposed) that the proportion of the Div 296 fund earnings attributable to Judi is $100,000.

Example – Brad

The Div 296 fund earnings attributable to Brad has been calculated as $1,000,000.

Stage 3 – Taxable superannuation earnings

Taxable superannuation earnings is calculated as:

The percentage amount ×the Div 296 fund earnings

which involves multiplying the percentage amount from Stage 1 by the Div 296 fund earnings calculated in Stage 2.

Example – Judi

Judi’s taxable superannuation earnings is calculated as:

25% ×$100,000=$25,000

The amount of tax payable on Judi’s large superannuation balance is:

$25,000 ×15%=$3,750

Example – Brad

Tax on Brad’s large superannuation earnings

Brad’s taxable superannuation earnings is calculated as:

$1,000,000 ×75%=$750,000

The amount of tax payable on Brad’s large superannuation earnings is:

$750,000 ×15%=$112,500

Tax on Brad’s very large superannuation balance earnings

Brad’s very large superannuation earnings is calculated as:

The percentage amount ×the Div 296 fund earnings

The percentage amount on Brad’s very large superannuation earnings is 16.67% and Brad’s superannuation earnings is $750,000. Therefore the amount of tax payable on Brad’s very large superannuation balance is:

16.67% ×$750,000=$125,025

The amount of tax payable on Brad’s very large superannuation earnings is:

$125,025 ×10%=$12,502.50

The total Div 296 tax payable by Brad will be:

$112,500+12,502.50=$125,002.50

The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 is yet to be debated in both houses of the parliament which may result in a number of changes if the legislation is passed and becomes law. Also, as the regulations will not be made until the legislation is passed there are some aspects which are not known at this stage as indicated above. Therefore the examples above are based on the bill and indicative of how Division 296 will operate.

Want to know more?

Graeme recently hosted a webinar on this topic which you can watch here.

We will also be hosting more webinars and events with Graeme in the coming months.





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The Cloudoffis Bulletin – December Edition

Welcome to the last Cloudoffis Bulletin of 2025! The team at Cloudoffis wishes our wonderful community a restful and enjoyable break over the holidays.

This month, we have a jam-packed newsletter for you – featuring some really insightful updates from industry expert Graeme Colley and some great content featuring Tyler Caskey and Heather Smith. Sit back and enjoy this read.

We look forward to catching up with many of you in the coming weeks.

Latest News

Reimagining workpapers with an industry expert Tyler Caskey

Get your Workpapers Sorted with Cloudoffis

If your workpaper process could use some efficiencies as you head into 2026, learn more about how one of our customers, Paul Money, transformed his workpaper process with Workpapers Sorted, by Cloudoffis.

Enjoy this special demo with Heather Smith

If you like what you see, you can book a personalised demo with the team today.


A special event in Sydney

Thank you to our wonderful community for joining the team for our last event of 2025! It was a pleasure to invite our partners, customers, and industry experts for an evening of insights and celebration.

We look forward to welcoming you at more events in 2026!

SMSF Death Benefits Checklist

When we host our quarterly Ask Graeme webinars, one question which always arises is around the topic of SMSF death benefits. Our team worked with Grame Colley on putting together this checklist to help you and your clients ensure you are asking the right questions on this topic.


An update on Division 296, by Graeme Colley

Division 296 has been a hot topic this year, and with recent updates to this legislation

we got an update from industry expert Grame Colley on what this means for you.


What’s new with Workpapers Sorted

Improved FYI Document Upload Experience 🙌

We’ve added clear file-type icons within the FYI Document screen, making it easier to identify and select the correct format when uploading documents for your workpapers.

Client Tax History at a Glance 📘

A new “Lodged as per ATO” column is now available in the Job Financial Reports screen.

This displays the past four years of lodged Income Tax Return information, giving preparers immediate visibility of the client’s history in a single view—supporting more accurate workpaper preparation and tax return reviews.

Enhanced Workpapers ✅

We’ve made a series of improvements across our workpapers to ensure more reliable and accurate calculations, along with the addition of new workpaper templates to support a broader range of scenarios. (Accounts Receivable, Accounts Payable, Depreciation Schedule as per Accounts)

Coming in December:

New PDF Workpaper Package Format 🙌

  • We’re introducing a redesigned PDF package for workpapers.

  • The new format focuses on readability and review efficiency, helping preparers and reviewers navigate documentation more easily during the finalisation process.

Excel File Viewer in the Document Section ✅

  • Excel uploads in the document section will soon open directly in an Excel-style view rather than converting to PDF.

  • This improvement ensures better clarity and preserves the original structure of your spreadsheets.

Are you ready to grow with Cloudoffis?

Whether your practice specialises in auditing or offers a full suite of accounting and advisory services, Cloudoffis has you covered with streamlined workpapers and workflows. Cloudoffis is here to help keep your practice running smoothly.

  • Quick Setup – Get started in minutes

  • Flexible Platform – Work the way you want with adaptable features and integrations

  • AI, Cloud-Based Technology – Delivering efficiencies and compliance at scale

  • Flexible Pricing & Unlimited Users – No lock-in contracts

  • Free Onboarding & Ongoing Training – Onboard your team effortlessly with expert guidance and continuous support at no extra cost

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Graeme’s Super News - A look back on SMSF in 2025

Graeme’s Super News – A look back on SMSF in 2025

Read the latest updates from Graeme Colley, a respected educator, policy advisor, and technical expert with over 30 years' experience in taxation and superannuation.

In Graeme’s final update of 2025 – he reflects back on 2025 while adding some thoughts to what 2026 may hold.

Welcome to the end of another year and our last newsletter for 2025. This year has given us some possible changes to super, rulings from the regulators and greater obligations for super fund auditors.

Giving the gift of super

But seeing it’s the festive season and a time of giving, why not give a gift that lasts the test of time, like super. Give yourself a Christmas present by making personal contributions to super, increasing your salary sacrifice or helping family members boost their retirement savings. While contributions to super may not have an immediate impact, they may actually give a substantial long-term benefit.

Good fund administration

When looking back at the year, the main super issues centre on maintaining good fund administration. This includes making sure pensions are paid correctly and that auditors carry out
their professional duties properly.

An important change to anyone receiving a pension is to make sure that at least the minimum amount is paid. Failure to meet this requirement results in the pension ceasing from the start of that financial year, and all payments being treated as lump sums. Anyone wishing to recommence the pension must go through the process of starting a new pension in the next financial year with entirely new documents as well as calculations.

Underpaying the pension means additional income tax for the fund, as the amount supporting the pension will be treated as being in the accumulation phase for the year of the underpayment. Also, there may be transfer balance cap issues when the pension is stopped and if a new pension commences. One good way of making sure at least the minimum amount is paid can be to arrange for direct debits from the fund accounts to the pensioner. That way, there is a greater risk of the pension complying with the rules.

Something for auditors

For auditors, this year provided a number of salient lessons from the regulators and the courts as they took a tougher line on the need to maintain records and gather appropriate evidence in support of the auditor’s conclusions. Failure to meet these requirements resulted in many auditors being disqualified to audit an SMSF.

If you’ve been in this position before and are looking to avoid this in 2026, you should consider speaking to the team at Cloudoffis, whose technology helps maintain records in the cloud.

Division 296

The reannouncement of Division 296 tax on the increase in super balances above $3 million raised it’s head again. However, changes were made due to the reaction of the public and professional associations. The result was a rework of the basic proposed rules to include a second threshold of $10 million, indexation of the thresholds as well and including only realised gains in the calculation.

It is expected that the Division 296 proposal will show its head again early next year and be passed in time for it to commence on 1 July 2026. It will be interesting to see whether it will make it into law and how the changed proposal will operate.

Payday Super

Unlike the Div 296 tax, Payday Super is law and will commence from 1 July 2026. That legislation requires employers to pay super contributions at the same time as an employee’s salary and wages. In view of the effort required by employers to upgrade their payroll systems, the legislation provides a transitional period to comply with the new law. A draft of the ATO’s compliance approach in the first year of Payday Super for the 2026/27 financial year is published in PCG 2025/D5.

So summing up, it’s been another challenging yea,r and next year looks like it will be no different as we do our best to comply with the continuous changes in super. All the best for the holiday season.

Are you ready to grow with Cloudoffis?

Whether your practice specialises in auditing or offers a full suite of accounting and advisory services, Cloudoffis has you covered with streamlined workpapers and workflows. Cloudoffis is here to help keep your practice running smoothly.

  • Quick Setup – Get started in minutes
  • Flexible Platform – Work the way you want with adaptable features and integrations
  • AI, Cloud-Based Technology – Delivering efficiencies and compliance at scale
  • Flexible Pricing & Unlimited Users – No lock-in contracts
  • Free Onboarding & Ongoing Training – Onboard your team effortlessly with expert guidance and continuous support at no extra cost
  • Tailored Solutions – Our agile team adapts to your unique business needs to ensure your success
Book a demo








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Graeme’s Super News - November Edition

Graeme’s Super News – November Edition

Read the latest updates from Graeme Colley, a respected educator, policy advisor, and technical expert with over 30 years’ experience in taxation and superannuation.

Welcome to some of this month’s roundup of key developments with SMSFs. From ATO compliance initiatives to ASIC audit reviews, make sure you’re up to date.

ASIC Flags Auditor Independence Breaches

ASIC recently released Report 817 – Building trust: Auditor compliance with independence and conflict of interest obligations. The report followed ASIC enforcement action taken against several auditors and firms identified as not meeting the independence and conflict of interest requirements.

Nearly one-third of the 48 auditors reviewed breached the mandatory independence requirements. Nine auditors failed to meet rotation requirements for 14 listed clients, and five held prohibited relationships under the Corporations Act. These breaches were found across all sizes of audit firms reviewed.

The source of the breaches was due to poor systems, lack of policies, carelessness, and inadequate quality control. ASIC considered that many auditors adopted a narrow, “tick-box” approach to compliance and failed to consider threats to independence or changing circumstances during audits. Some relied on inappropriate safeguards and did not document how they assessed independence risks.

Examples of threats included excessive non-audit fees—sometimes five times higher than audit fees—and long-standing relationships between auditors and clients, some lasting up to 36 years. ASIC emphasised that independence is fundamental to audit quality and encouraged all auditors to strengthen their practices and policies.

ATO Cracks Down on Late SMSF Lodgements

The ATO is taking a tougher stance on late lodgement of SMSF annual returns. About 10% of 2022/23 returns remain outstanding, and similar figures are expected for 2024. The ATO’s experience is that late lodgement often signals illegal early access or other compliance issues.

Consequences for late lodgement include removal of the fund from Super Fund Lookup, which restricts contributions and rollovers, and potentially may result in trustee disqualification.

Continued non-lodgement may trigger harsher penalties. The ATO advises trustees to respond promptly to any ATO correspondence and avoid ignoring compliance letters.

Trustee Declaration Requirements Clarified

Since 2007, SMSF trustees have been required to complete the ATO trustee declaration within 21 days of appointment and retain it for at least 10 years. Auditors are required to sight the original declaration and keep a copy in their audit file, along with annual confirmations that trustees continue to retain it.

However, many auditors only review copies and request new declarations when originals are lost. The ATO has clarified that if the original cannot be sighted, a new declaration must be signed. A once-off breach can be rectified, but repeated failures require an Auditor Contravention Report (ACR).

Auditors should not be lodging ACRs annually for the same fund due to missing originals if the breach has been rectified.

Market Valuation Breaches Increasing

Breaches of regulation 8.02B of the SIS Regulations, which requires SMSF assets to be valued at market value, accounted for 12% of all reported breaches in 2024–25. Trustees must ensure that valuations for each income year are accurate, in line with the ATO’s valuation guidelines and provide supporting evidence to auditors.

The ATO is using data analytics to identify funds which have reported unchanged asset values year after year, raising concerns about compliance. Failure to meet valuation requirements can result in additional tax liabilities and administrative penalties.

Auditors must assess whether the valuation basis is appropriate and document their findings. Trustees are reminded to provide objective, supportable evidence, including all documents requested by auditors.

SMSFs Failing to Respond to Release Authorities

The ATO has seen a rise in SMSFs failing to respond correctly to release authorities—documents authorising the release of funds to pay liabilities such as excess contributions, Division 293 tax or possibly Division 296 tax in future. Trustees must release the requested amount and submit a release authority statement within 10 business days of receipt.

Non-compliance can lead to significant penalties. Trustees should regularly check secure mail channels, set reminders, and use SMSF software to track deadlines. Working closely with administrators or tax agents can help ensure timely and accurate responses.

Keeping fund contact details, including electronic service addresses, up to date is essential for receiving important correspondence.

Surge in Compassionate Release of Super

Applications for compassionate release of super (CRS) have surged, particularly for dental treatments. Requests rose from 56,400 in 2021–22 to 90,700 in 2024–25, with costs reaching $104.4 million. Most applicants were aged 34 to 60.

The ATO, in collaboration with AHPRA, is concerned about practitioners supporting inappropriate access, especially for cosmetic procedures. Release on compassionate grounds is only available in limited circumstances, such as treating acute pain or life-threatening conditions, and requires certification from two practitioners.

Practitioners have been warned against providing financial advice without a licence and must ensure medical reports are accurate. New guidance from AHPRA and the Dental and Medical Boards emphasises that treatments should only be certified if necessary.

Writing Off SMSF Loans Requires Documentation

Writing off loans in SMSFs is being scrutinised by the ATO for breaches of the sole purpose test. Trustees need to demonstrate reasonable efforts to recover funds, including legal advice or evidence of insolvency. Without proper documentation, the ATO may see the transaction as illegal early access.

SMSFs generally cannot claim bad debt deductions unless they are in the business of lending. A capital loss may be claimed if the loan was made with a reasonable expectation of repayment.

If a member illegally accesses super, the funds cannot be returned, and any repayment to the fund will be treated as a new contribution. Trustees may face section 65 penalties, civil and criminal sanctions, disqualification, and fund non-compliance. Early access also breaches preservation standards, making the amount assessable income for the member.

Thank you for reading this months’ update.

If you are looking for more SMSF insights, you can watch Graeme’s latest webinar on demand here.



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The Cloudoffis Pulse - Product Updates

Welcome to our first-ever Cloudoffis product newsletter – Cloudoffis Pulse, where we bring you the latest product updates across Workpapers Sorted, SMSF Auditomation and SMSF Sorted.

This month, we’ve some really exciting updates to share with you. Our incredible product team has been working hard to build the products you’ve asked for.

We hope you enjoy this update

From the product desk:

We are pleased to announce that Cloudoffis has successfully attained ISO 27001 certification. At Cloudoffis, safeguarding your data is our top priority. We are proud that we have achieved ISO 27001 certification, the internationally recognised standard for information security management systems (ISMS).

You can learn more about this here.





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