30/03/2026
What exactly is the auditor's role when it comes to property valuations? This is a question that comes up from time to time, especially since the valuation process typically involves both management and a valuation expert.
For many entities, property is one of the most significant assets on the balance sheet. Where valuations are material to the financial statements or carry a risk of material misstatement, auditors need to apply heightened scrutiny. But strong outcomes don’t happen in silos, they depend on effective collaboration between management, valuers and auditors.
Management serves as the critical link between auditors and valuers who, in turn, contribute technical expertise by preparing valuation reports in accordance with relevant professional standards (for example, SISV Valuation Standards and Practice Guidelines or International Valuation Standards, etc) to arrive at an appropriate fair value.
Robust valuations go beyond the final number. They provide clear explanations of the key assumptions, judgements, data and methodologies underpinning the valuation.
When each party understands their role and works together effectively, audits become more efficient and audit quality is enhanced. Read this article by ISCA's Auditing and Assurance Standards Committee to learn practical ways to create a win-win outcome. We also thank the Singapore Institute of Surveyors and Valuers (SISV) for their collaboration and support on this article.
Access the article here:
https://ca-lab.isca.org.sg/technicalities/assessing-property-valuations-in-audits/
