Auditing Expert in Hedge Fund NAV
An auditing expert with experience auditing net asset value reports for hedge funds was requested for a case alleging negligence and breach of fiduciary duty. The defendants managed hedge funds that were structured to invest in mortgage backed and other asset backed securities to preserve capital. Defendants used internal methods to determine portfolio values for the funds rather than basing valuation on independent, third-party marks provided by an external brokerage firm, resulting in overinflated valuation. The plaintiffs, who were shareholders in the funds, alleged that the funds' auditor, a co-defendant, was negligent and violated generally accepted auditing standards, or GAAS provisions, by failing to corroborate the reported valuation.
IMS ExpertServices was asked to find experts with extensive experience auditing hedge funds. The right expert would have experience as lead auditor on at least 10 hedge fund audits and expertise reading net asset value, or NAV, reports for hedge funds.
This auditing expert has more than 27 years of experience as an accountant and auditor. For over 10 years he has audited three hedge funds per year as part of his private accounting practice. Services he offers his hedge fund clients include monthly accounting, year-end audits, report and tax return preparation, and specialized software development. This expert is deeply familiar with GAAS and other accounting standards as they apply to hedge funds. He understands the importance of third party verification of asset values. IMS Reference #4978115
Securities Accounting Expert
This securities accounting expert is a certified public accountant who holds NASD licenses 7, 24, 27, 55 and 63. He acts as the hedge fund compliance auditor for 4 or 5 hedge funds each year. He has experience with hedge funds totaling $300-$500 million each and including both offshore and onshore funds. Previously this expert worked as a desk trader in mortgage backed securities. He is familiar with hedge fund issues concerning application of different accounting standards, including GAAP and IAS. He has previous litigation support experience. IMS Reference #498053