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Ensuring SMSF Compliance: The Vital Role of Asset Valuations

ENSURING SMSF COMPLIANCE: THE VITAL ROLE OF ASSET VALUATIONS

23 October 2023

Why Accurate Asset Valuations Matter for a Smooth Audit Process
 

When preparing for your SMSF audit, it's crucial to prioritise asset valuations as part of your annual responsibilities. Each year, SMSF trustees are tasked with the essential duty of assessing their fund's assets at their current market value.

In the audit process, your chosen SMSF auditor, who is approved by regulatory authorities, will thoroughly examine these asset valuations before the submission of your Self-Managed Superannuation Fund Annual Return (SAR). The auditor's role primarily involves verifying that assets have been valued accurately and evaluating the appropriateness of the chosen valuation methods in line with the asset's nature. It's important to note that auditors do not assume the role of valuing your fund's assets themselves.

As the SMSF trustee, it is your responsibility to furnish your auditor with objective and substantiated evidence regarding the valuation of your fund's assets. This includes providing all pertinent documents as requested by your auditor. Timely and comprehensive cooperation in this regard is crucial to prevent potential delays in the audit process. Failing to provide the necessary evidence may lead to a delayed SAR lodgment or, in case of valuation errors, a possible breach of compliance regulations.

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