#9238
Awan Hammad
Participant

    Hi Jean

    My view is to not accept the valuation as it is not supported by anything other than a declaration from the trustee. It could have a higher actual value and then would be a material asset to the Fund.

    I would audit the Fund by raising a finanacial qualification that you have not been able to verify the value of the investment. I would also raise this in your management letter to the trustee.

    Re the SIS compliance you could qualify re section 35C(2) that requires that:

    “The trustees must provide the auditor with the necessary documents to complete the audit in a timely and professional manner; and within 14 days of a written request from the auditor”.

    That is your breach is that you have not been able to be provided with documents so that you can verify the existance of the asset and its value. Arguably normally a trustee should be able to get information re the value of an investment that it has invested in.

    You could also qualify on regulation 8.02B that requires:

    “When preparing accounts and statements required by subsection 35B(1) of SISA, an asset must be valued at its market value”.

    You are unable to verify the value of the investment so as a result you have no ability to sign off on this regulation.

    It would be great to get other members views on the query raised.

    Thanks
    The Auditors Institute

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