If the auditor, in the course of, or in connection with the audit of a SMSF, forms the opinion that the financial position of the SMSF may be, or may be about to become, unsatisfactory, the auditor is required to report to the ATO and to the trustees in writing, under section 130 of the SISA. The auditor completes Section G: Other regulatory information of the ACR.

Under the SISR,^[220] the financial position of a SMSF is treated as unsatisfactory if, in the auditor’s opinion, for an accumulation fund, either the aggregate members’ benefits accounts exceed the value of the assets, or the accrued members’ benefits exceed the value of the assets.