<DOCUMENT>
<TYPE>EX-99.77B ACCT LTTR
<SEQUENCE>4
<FILENAME>audit2.txt
<TEXT>



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON INTERNAL CONTROL



Shareholders and Board of Directors
Cornerstone Strategic Value Fund, Inc.
New York, New York


In planning and performing our audit of the financial statements of
Cornerstone Strategic Value Fund, Inc. (the "Fund") for the year
ended December 31, 2004, we considered its internal control,
including control activities for safeguarding securities, in order
to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on internal
control.

The management of the Fund is responsible for establishing and
maintaining internal control.   In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls.   Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with accounting principles
generally accepted in the United States of America.   Those controls
include the safeguarding of assets against unauthorized acquisition,
use, or disposition.

Because of inherent limitations in any internal control, error or
fraud may occur and not be detected. Also, projection of any
evaluation of the internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and operation
may deteriorate.

Our consideration of the internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by Public Company Accounting
Oversight Board (United States).   A material weakness is a
condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in
amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing
their assigned functions.   However, we noted no matters involving
internal control and its operation, including controls for
safeguarding securities, which we consider to be material
weaknesses, as defined above, as of December 31, 2004.

This report is intended solely for the information and use of
management, Shareholders, and Board of Directors of Cornerstone
Strategic Value Fund, Inc. and the Securities and Exchange
Commission, and is not intended to be and should not be used by
anyone other than these specified parties.



TAIT, WELLER & BAKER

Philadelphia, Pennsylvania
February 15, 2005
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</DOCUMENT>
