Reg 8.02B of SISR (Superannuation Industry Supervision Regulations 1994) requires all the assets held in the SMSFs must be valued at market value in the Statement of Financial Position. If there is no sufficient evidence about the material assets, SMSF auditors must qualify both financial and compliance sections in their Independent Auditor’s Report.
Therefore, SMSF trustees must seek the evidence to show how the asset was valued and keep the record of the valuation method and relative documents. The SMSF service providers can help trustee to obtain valuation evidence using their own expertise or third party services.
SMSF auditors have been under increased scrutiny by ATO in regards to the market valuation evidence. If auditors fail to provide sufficient verification and identify or report the contravention, ATO may refer them to ASIC for further investigation.