Glossary · Tax & Reporting
Audit Support
Audit support is the preparation of schedules, reconciliations, confirmations and explanations that a fund’s independent auditor needs to complete its annual audit.
The annual audit of a fund’s financial statements relies on evidence prepared by the manager and its service providers. Typical requests include the year-end trial balance, draft statements, investment schedules with pricing support, Level 3 valuation memos, reconciliations to custodians and brokers, capital activity and investor statements, fee and expense calculations, legal documents and board minutes. Auditors also send independent confirmations to custodians, banks, counterparties and investors.
Effective audit support starts with an agreed prepared-by-client (PBC) list and timetable, a single tracker for requests, and consistent evidence packs across funds. Valuation support for hard-to-value assets usually takes the most time, followed by fee calculations and capital activity.
Pitfalls include late or incomplete PBC items, reconciliations with old unexplained breaks, valuation memos that do not document key inputs, and inconsistent numbers between schedules. Fundtec prepares audit schedules and responds to auditor queries as part of fund accounting and shadow accounting mandates.
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