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About audit 2013 for my hedge-fund

12 January 2016

If you want to get interested investors to take part in your hedge-found, you should get your audit done by a well-known company. Professional investors work only with well established audit companies. It is highly unlikely that a professional and successful investor would put his money on the line in a company which does not have an audit done by one of the Big Four Firms.

I manage a sub-fund in the hedge-fund platform of the company "Apex Fund Services". Using this hedge-fund platform I can get the financial statement report by the famous company Deloitte or PWC with a cost of only $12 000. I began my auditing process with them in January of 2014. The auditor asked for the brokers’ reports from the administrator of my hedge-fund. I was supposed to ask the administrator for the information but employee’s audit company asked me all the necessary information to make an asset management of the hedge-fund. Later they requested the reports to be checked by the broker companies. The auditor wrote me in a letter that he was going to give the final audit report in April of 2014, however due to delays the report was finalized in August of 2014. Every audit company that I get involved with, I ask directly for an accurate and authentic deadline of the audit report. I want to share with all of my colleagues not to expect to receive your audit reports in a short or timely fashion, even if the audit company promises to do so, it may not be the case.

The audit company would ask your broker company not only for the broker reports, but as well for the necessary documentation that complies with IFRS. The audit company has to estimate the risks of the broker companies. You need to be diligent, patient and persistent in asking for your audit report, other wise you might not know when you will receive it. After receiving the audit report do not be in a hurry to confirm it. First you should check all the information in the report. I had an experience where the numbers did not add up and the auditor’s interpretation was far from reality.

Denis Eganov 06.10.2014

Eganov Asset Management Stock&Derivatives Strategies S.P.

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