Background

The Accounting & Reporting Advisory (ARA) team, consisting of Elizabeth Kettler and Logan Busch, was engaged to assist with the accounting and reporting work for multiple private equity funds that were consolidated into an SEC registrant.

Procedures

The ARA team assisted the registrant’s Financial Reporting group with the quarterly financial statement close process (FSCP) to prepare a balance sheet, income statement, investor summary report, and other supporting documentation for various private equity funds.

As part of the quarterly process, the team developed a calendar to organize the close responsibilities allocated to our team in the FSCP process. These included reviewing journal entries and workbooks prepared by a senior accountant summarizing the activity that occurred in each of the funds during the quarter, as well performing a check to make sure all entries posted to the general ledger were complete and accurate.

After the completion of the close process, our team reviewed the fund financial workbook that the client’s senior accountant prepared. The workbook included a balance sheet and income statement for each of the funds.

Additionally, our team prepared internal rate of return (IRR) calculation workbooks for each fund along with investor summary reports that provide an update on the performance of the funds for each investor. Lastly, we assisted management with the documentation of various workpapers to satisfy key Sarbanes–Oxley controls related to the firm investment valuation process.