Mutual fund financial statement preparers may face significant reporting challenges as a result of the business disruption and economic uncertainty arising from the COVID-19 response.
The COVID-19 environment is heightening sentiments of insecurity and risk, in the wake of greater volatility in the asset prices and currency-exchange rates and a marked decline in long-term interest rates in developed countries.
This article highlights those areas that will be the most challenging for mutual fund financial statement preparers in the current environment. We believe that a robust dialogue between management, the auditor, and the audit committee in these areas will best assist the audit committee in fulfilling its oversight responsibilities.
Download the article for the key questions mutual fund audit committes may ask management:
- Valuation of investments
- Collectability of interest income
- Fund level debt
- Related-party transactions
- Subsequent events and significant risks and uncertainties