Hedge Fund Financials: Year-End Audit Review Essentials (Video) (Course Id 2796)

• Who is this course for?
  This course is designed for CPAs, accountants, and other professionals seeking Continuing Professional Education (CPE), particularly those with a basic understanding of accounting and hedge fund operations.

• What is this course about or what problem does this course solve?
  This course provides a detailed walkthrough of hedge fund financial statements, helping learners understand each component of investment fund reports and identify key disclosures, interconnections, and potential red flags during year-end audit reviews.

• How can the knowledge from this course be used?
  The knowledge gained can be applied to analyze, prepare, and review hedge fund financial statements, including evaluating investment schedules, interpreting changes in net assets, and assessing the accuracy and completeness of audited financials.

• Why is this course important to a CPA or Accountant?
  This course is important because it strengthens a CPA’s or accountant’s ability to accurately review and interpret complex hedge fund financial reports, ensuring proper disclosures, compliance, and reliable audit outcomes.

• When is this course relevant or timely?
  This course is especially relevant during year-end audit periods or whenever professionals are involved in reviewing or preparing hedge fund financial statements and disclosures.

• How is a course like this consumed or used?
  This course is completed as a self-study video format, where participants review the material and must pass a final exam with a minimum score of 70% to earn CPE credit.

This session offers an in-depth walkthrough of the essential components that make up the financial statements of a typical investment fund or pooled investment vehicle. The session breaks down each section of a comprehensive financial report, including the Directors’ Statement, Auditor’s Report, Balance Sheet, Profit & Loss (P&L), and Cash Flow Statement. We’ll explore the Schedule of Investments in detail, including its hierarchical reporting requirements—from investment type to issuer—and the significance of issuer-level disclosures exceeding 5% concentration. You’ll also learn how capital activity and changes in net assets are reported and how to decode the notes that support the financials.

Through practical insights and structured examples, attendees will gain clarity on what each statement reveals, how the elements interconnect, and common red flags to watch for during preparation or review.

Video - NASBA QAS - NASBA Registry - 2796

Course Learning Objectives

• Identify the key components of an investment fund’s financial statements
• Analyze investment schedules for disclosure hierarchy
• Reconcile NAV movement with capital activity
• Interpret key changes in net assets and their implications
• Assess capital transactions and allocations
• Evaluate disclosures and notes for completeness and clarity
• Evaluate audited hedge fund financials for accuracy and completeness

Chapter 1 - Hedge Fund Financials: Year-End Audit Review Essentials

Chapter 1 Review Questions