Audit services
A risk based audit approach and timely communication
Deloitte Audit services provide audits and reviews of financial statements and reporting on internal controls in accordance with applicable professional standards. Our audits are planned to be responsive to our assessment of the risk of material misstatement based on the understanding we gain of the funds service providers and management companies and their environment, including their internal control. We utilize this understanding to design the nature, timing and extent of our audit procedures.
We work closely with the fund accounting agents and those in charge of governance of the funds and management companies, while maintaining an objective and independent attitude and encourage open communication during the course of our services. We also strive to provide timely communications regarding professional developments and insights regarding matters that may affect the funds and their service providers.
Our range of audit services
Statutory and contractual audits
- Statutory and contractual audit of the financial statements
- Issuance of the long form report in accordance with the guidelines set forth in the CSSF circulars 2002/81 and 2004/146
- Issuance of the management letter
- Issuance of the reports in line with CSSF 2002/77 requirements
Reporting for funds restructuring
- Independent review of contribution and redemption in kind
- Agreed upon procedures in relation with transfers (domiciliation, custodian, central administration, …)
Reporting for cross border distributions
- Various specific reporting requirements such as to the Hong Kong Securities and Financial Commission (SFC), and review of Dutch addendum prospectuses
- Swiss performance fee checks
- Review of German solvency ratio/CAR-reporting
Pre-launch stress tests
- Review of valuation models
- Review of performance fee calculation models
- Review of risk management models
For further information about valuation models, performance fees and risk management models, please visit the Performance measurement, valuation & risk management section.
Other engagements
- Report on agreed upon procedures
- Any special request from the CSSF
- Global Investment Performance Standards (GIPS) compliance and verification
We understand your organisation before starting our audits
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Our audit approach is hands-on and partner-led. We attach importance to understanding the specific features of the funds, investment strategies, distribution network, reporting deadlines and your long-range strategic plans. Based on this knowledge, our approach will encompass a highly robust risk assessment process and an audit plan designed to respond to the key risks which are relevant to our audit. Overall, our audit seeks to provide you with information which will assist in the preservation and protection of your brand and reputation. |
Industry leadership External auditors with a market share of 19 % in terms of number of Luxembourg regulated sub-funds and 28% of the Specialised Investment Funds (SIF) |
Deloitte’s key steps in performing its audit
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| Risk assessment | Internal control assessment and testing |
| - Review of business activities and risk identification - Identify key management and monitoring controls - Understand the relevant processes |
- Review of processes and testing effectivemeness of controls - Report on opportunities for improvements (valuation, custody, accounting, compliance, ...) - Collaboration with risk and internal audit |
| Continuous communication | Validation of pricing |
| - Year round communication - Validation of issues with your local management and fund administrator - Systematic presence to status meetings, Board and Audit, Risk and Compliance Committee meetings |
- Comparison of pricing with external data (Portfolio Audit and Analysis Tool) - Validation of derivatives pricing - Reconciliation of all relevant product data (interest rates, maturity dates, dividends, ...) |
| Reporting | Tests of details |
| - Review of the financial statements - Preparation of long form reports - Preparation of management letters - Preparation of CSSF circular 2002/77 reporting, if required |
- Tests of balance sheet accounts - Tests of expenses and accruals - Compliance testing |
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