The SMSF held shares in a listed company that went into a trading halt in 2018 as a result of an ASIC investigation. At the time the 20,000 shares held by the Fund were valued at $1,07 each. The shares continued in a trading halt throughout the subsequent years and were then valueless.

The financial statements for 2021 were prepared in July 2022 and the shares were valued at the $1.07 each in the financial statements. The Fund's 2021 were provided for audit on 31/03/2023 and it was subsequently noted that the Fund disposed of the 20,000 shares for $1 in total during the 2022 financial year.

I am of the opinion that the 2021 financial statements should be changed to show that the market value of the 20,000 shares is $1 in total - i arrive at this conclusion based on the now acquired information that the shares were valueless. The accountant for the Fund is refusing to change the financial for the 2021 financial year.

I welcome any views from fellow auditors as to their thoughts on this matter.

Thank You