[Awan Hammad]

Hi Alain

If you are currently doing a SMSF audit and the valuation of an asset is materially incorrect my view is you should issue a Part A financial qualification and a Part B compliance qualification re SIS 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 would also need to raise it in your management letter and lodge an auditors contravention report (assumind it meets the criteria).

Given your concerns the value in the financial statements may not have been prepared on a reasonable basis.

The ATO’s guidelines re valuations can be found at:

Valuation Guidelines for Self-managed super funds 

Thanks

THE AUDITORS INSTITUTE