Investment Fund Auditing: What it is, how it works, and why it's essential for your fund's credibility

Transparency: the most valuable asset in the capital markets

In a market that moves billions and essentially depends on trust, transparency is the most valuable asset. Investment funds are growing at a rapid pace, but along with the volume of resources come greater demands for governance, control, and accountability.

It is in this context that independent auditing operates: ensuring that the fund's financial statements faithfully reflect its real equity position, performance and regulatory compliance.

In practice, the audit is the seal of trust that validates the information presented to the investor, the administrator and the SEC.

What is an investment fund audit

A fund audit is an independent examination of a fund’s financial statements and operations, conducted by a public accounting firm registered with the PCAOB and in compliance with U.S. GAAS and SEC regulations.

The existence and valuation of the assets comprising the fund’s portfolio;

• The accuracy of accounting records and the appropriateness of the fund’s fair value policies in accordance with U.S. GAAP;

• Compliance with the fund’s governing documents and applicable limits established under SEC regulations;

• The adequacy of segregation of duties and internal controls among the investment adviser, fund administrator, and custodian.

Unlike auditing operating companies, fund auditing focuses on the reliability of the share value, the accuracy of valuations and regulatory compliance.

How the audit process works

At Pitmen, we apply a rigorous and transparent audit methodology designed to meet the highest standards of the SEC, PCAOB, and U.S. GAAS. Our process combines technical depth, independence, and clarity — turning complex financial data into actionable insight and confidence for investors.

Planning and Fund Understanding

We start with an in-depth review of the fund’s structure, investment policy, and control environment to identify risks and define the right audit strategy for its level of complexity.

Testing and Evidence

We perform detailed substantive and analytical procedures, including confirmations with custodians and valuation reviews of portfolio assets under fair value principles (ASC 820 / IFRS 13).

Conclusions and Opinion

Our independent auditor’s report delivers a clear and objective opinion on the fund’s financial statements, along with recommendations that strengthen governance and internal control.

Communication and Value

Transparency defines our work. We maintain open communication throughout the process, ensuring every stakeholder understands our findings and the value they bring to the fund’s credibility.

At Pitmen Audt, every audit is an opportunity to reinforce trust, governance, and market integrity.

Why Auditing is Essential for Your Fund

Independent auditing is not just a regulatory requirement—it is a tool for credibility and competitive differentiation. It brings concrete benefits:

Benefit	How It Strengthens the Fund
Transparency and Trust	Reinforces the fund’s credibility with investors and regulators, ensuring confidence in every disclosure.
Governance and Control	Strengthens internal processes and risk oversight, fostering a culture of accountability and discipline.
Regulatory Compliance	Keeps the fund fully aligned with SEC, PCAOB, and IFRS standards — ensuring integrity in reporting.
Risk Reduction	Minimizes the likelihood of fraud, valuation errors, and data inconsistencies.
Investor Confidence and Reputation	Positions the fund as a trustworthy and transparent vehicle in the investment market.

In short: auditing transforms compliance into reputational value.

Technology at the service of auditing

At Pitmen, fund auditing is driven by technology. We utilize digital auditing, BI, and reconciliation automation tools to ensure greater accuracy, efficiency, and traceability of information.

Using data analytics, it is possible to:

• Identify anomalies and patterns in large volumes of data;

• Automate transaction integrity testing;

• Increase analytical depth and reduce the risk of human error.

The result is a more agile, reliable, and strategic audit that combines technical rigor with data intelligence.

Trust as a signature

Auditing investment funds is more than a legal obligation: it is a commitment to transparency and market integrity. Each opinion issued is a guarantee that investors can trust the numbers and management practices that support the fund.

At Pitmen, we combine technical rationale, non-negotiable ethics, and governance vision to deliver audits that reinforce credibility and build reputation. Speak with an expert and discover how to transform your fund's audit into a valuable and trustworthy tool.

About Pitmen

Pitmen is a multinational firm specializing in independent auditing, governance, and regulatory compliance.

We focus on investment funds, valuation, and corporate governance, adhering to international standards (IFRS, PCAOB, CVM, and NBC TA). Our purpose is to strengthen transparency and trust in the financial market—with technical rigor, ethics, and analytical intelligence.