What Role Should the GC or CCO Play in the Audit of a Fund’s Financial Statements?
Richard Morris spoke with Hedge Fund Law Report about tactics for investment managers within hedge funds to manage the audit process while finalizing reports around year-end funds performance. He noted that to the extent that a firm has not employed an in-house CFO, the investment manager may elect to outsource the function to a consultant or accounting firm. However, the ultimate responsibility for the audit will remain with the principals of the investment adviser. “Some firms, even those that are smaller in nature, have begun to form audit committees – typically comprising all or some of the firm’s principals,” explained Morris, adding that the audit committee receives information from the CFO and any other senior members of the finance team, the CCO and the GC.