I trust everyone is well.
I'm currently finalizing an SMSF audit with total assets under $950. The fund holds $540 in units in an unlisted unit trust, representing 5% ownership. Unfortunately, the trustee is unable to provide financial statements or any documents confirming the trust's existence or the value of the units.
Typically, I would consider breaches of Section 35C(2) for the inability to acquire necessary documents and breach of R8.02B2 for the inability to determine unit valuation.
Given the low total assets of the SMSF, I am seeking guidance how to deal with the current situation. Any guidance will be highly apricated.
Regards Dawood Hassan
Hi Dawood
I agree with your comments.
You should raise a Part A qualification re being unable to verify the assets of the Fund.
Yes re the Part B qualification raise qualify re:
Section 35C(2) - trustees not provided necessary documents to complete the audit, and
Regulation 8.02B - trustees must record assets at market value.
Thanks
The Auditors Institute
T