In the past, auditors assisted investment managers in the financial reporting process, sometimes even preparing the draft financial statements and related footnote disclosures. However, recent SEC actions have reaffirmed that auditors must maintain their independence in both fact and appearance. As a result, regardless of past reliance, fund managers are unable to rely on their auditor in the financial statement drafting process, or for “non-audit” services as defined by the SEC.
Ultimately, it is the responsibility of management to prepare the fund’s financial statements. Investment managers and their administrators, however, may not have the specialized expertise needed to meet reporting and disclosures requirements, or perform the relevant calculations resulting in multiple rounds of revisions which may result in increased costs and delay the issuance of the audit. To address this potential gap in expertise, fund managers are encouraged to engage a qualified and objective third party CPA to guide and advise them through each step of the reporting process.
Preparing books, records and supporting schedules
Compiling or drafting financial statements
Making edits to financial statements
Preparing the final PDF file of the financial statements
Constellation’s accounting professionals have the experience and resources needed to provide financial reporting services that meet ever-changing standards. Constellation can prepare the initial draft of your financial statements and manage the process through issuance of the audit. With experienced CPAs acting as your outsourced CFO, you can rest assured your financial reporting process will be professional, accurate, and exceed the expectations of the fund's stakeholders.