This is what find is expected to do. It descends the directory tree with the path you specified as starting point. Depending on your find implementation and OS there are options that prevent find from descending (maxdepth or prune).
Any user that is not smart1 and is not a member of smartusr!
In this case the r-- permission for Others apply, leading to the funny output:
r bit => the directory can be read
no x bit => the files' inodes (type,permissions,owner,group,length,time,contents) cannot be accessed, therefore the ? marks.