653 paragraphs found
The audit procedures relating to investments will vary depending on the administration and management arrangements adopted by the trustee, the type of investments held and the trustee structure that holds the assets. The auditor exercises professional …
When preparing year end accounts, SMSF assets are required to be valued at market value each financial year. [90] Market value is defined in the SISA [91] and the ATO’s guidance on the process to establish a market value is contained in its Valuation …
The auditor obtains an understanding of the trustees’ rationale for selecting the basis of determining market value and exercises professional judgement in assessing whether the basis is appropriate given the nature of the asset and the financial and …
It is not the role of the auditor to value the assets. The role of the auditor is to check that assets have been reported at market value, and assess and document whether the basis of establishing market value is reasonable and the valuation is reasonable …
A material misstatement of the SMSF’s financial report results in the member’s interests being misstated, which has implications for the calculation of a number of important thresholds, including: the member’s total superannuation balance (TSB), which is …
SMSFs may invest directly in unit trusts, listed securities, PSTs or other investment products for which market prices are published and readily available. The auditor may verify that the unit price used is consistent with reference to cum-distribution or …
Non‑monetary items, such as property and collectables, require alternative methods to arrive at market value. The auditor makes reference to the ATO’s Valuation guidelines for self‑managed superannuation funds in order to establish that the basis for …
Investments in unlisted companies or trusts may need further consideration by the auditor in order to obtain evidence that the valuation is appropriate. Difficulties may arise when the company or trust reports on an ‘at cost basis’. Where the investment …
Where the SMSF has invested in a related trust or company, a review of the valuation methodology may reveal the instance of NALI, which requires a re-assessment of the calculation of the fund’s tax …
Where the auditor is unable to form an opinion in assessing whether the valuation is in accordance with the financial reporting framework adopted, due to uncertainty, and no expert valuation can be obtained, the auditor considers modification of the …