Other Assurance Services

There are many areas where third party review and confirmation of specific information can be valuable to an investment firm.

There are occasions when management, or other users, require assurance in the form of an auditor’s report on financial statements that are not required by statute, non-statutory financial statements. For example, in the case of a Cayman fund manager not required to have its financial statements audited, or where financial statements that include a non-group entity are more useful to management; perhaps the “group” includes a UK investment manager that is controlled by individuals rather than by a group company. We advise on the form of the financial statements and tailor our work and report accordingly.

In addition, investment managers may find it useful to be able to present assets under management or track record information to potential investors that has been subject to review by an independent professional. In regards to track record, where the formal GIPS verification of track record is not appropriate, there can be value in a limited scope review under the Agreed Upon Procedures framework.

Another area where assurance can be valuable is in relation to regulatory capital calculations. Until 2008 the FSA required auditors to report on the year end regulatory capital adequacy calculations of investment firms. Although no longer required by the FCA, such assurance may be of value to management. Similarly, review of Pillar 3 disclosure, whether or not it is appended to the audited annual financial statements, can provide valuable assurance to firms.

KP Audit is ideally placed to provide third party assurance on an ad hoc basis to meet the needs of investment firms. We take a flexible and pragmatic, as well as professional, approach to such assignments as appropriate.