Valuation reports are routinely scrutinised by a wide range of regulatory bodies and / or third parties. From the regulators perspective the principal reason for audit or review is to ensure the valuation report has been prepared in accordance with the appropriate standards which at a high level requires valuation reports to be objective, independent and supportable. Depending on the purpose of the report, valuations may also be reviewed by various other professionals seeking to verify its compliance with standard valuation procedures and test the report’s integrity.

• The Australian Taxation Office (ATO)

The ATO is the most common authority to review business valuations in contexts such as:

• • Capital Gains Tax (CGT) events
  • Restructures and rollovers
  • SMSF asset valuations
  • Transfer (stamp) duty matters (in coordination with state revenue offices

• State Revenue Offices (SRO/OSR)

For transactions involving transfer duty (stamp duty) or landholder duty, state revenue authorities may review or challenge valuations. They often require independent market valuations and may impose penalties for undervaluation.

• Family Law Courts

  In matrimonial property settlements or shareholder disputes, valuations may be reviewed by legal representatives, opposing parties, and the Family Court or Federal Circuit and Family Court of Australia. Courts often require valuations to be:

  • Conducted by qualified experts (e.g. CPA, CAANZ, or API members)
  • Compliant with APES 225 or IVS
  • Supported by evidence and clearly documented assumptions

• Financial Auditors

While external financial auditors do not “audit” business valuations directly, they may review:

• • Valuations of unlisted investments held by SMSFs, trusts, or private companies
  • Asset impairment testing involving business units
  • Valuations used in M&A accounting treatments

Auditors will check for consistency, method, and documentation supporting fair value under AASB 13.

• The Australian Securities and Investments Commission (ASIC)

  For regulated entities or during investigations, the Australian Securities and Investments Commission (ASIC) may review business valuations, especially in:

  • Fundraising (capital raising disclosures)
  • Financial services misconduct
  • Insolvency or unfair preference transactions

• Independent Experts

When valuations are used in shareholder buyouts, restructures, or mergers, independent expert reports (IERs) may be prepared and reviewed by other licensed valuers or professional panels.