Written by: Jake Vogel
I decided to take sometime this week to give a brief explanation about fieldwork. When an engagement team begins to prepare for an upcoming audit, the first step usually consists of planning. This step can range from setting up the software to record the work, preparing preliminary workpapers and contacting the client about documents and samples that will need to be ready when the team makes its visit.
Fund accounting audits vary slightly from normal audits because the documents that are needed are mostly digital. Because of this, the audit team can access a majority of the necessary information without ever stepping foot at the client’s office. Either way, it is always a good idea to make the trip to connect with the client and remind them why they chose you as their auditors.
Once the planning has concluded, it is time to visit the client and perform the necessary tasks to complete the fieldwork. For my internship I performed this step with my manager on July 6th through the 7th in Summit, New Jersey. The client is The Industry Leaders Fund (ILFIX, ILFDX, ILFLX). While dealing with the client I was informed about the managers patented investing strategy and the success his fund has had since its inception in 1999.
The fieldwork consisted of testing purchases and sales throughout the year and making sure they were documented correctly, confirming the dividend rates and dates used were correct, and even analyzing journal entries to ensure the correct accounts were being debited and credited. As mentioned earlier though, the main point of this trip was to get a little work done and catch up with the client.
The most interesting part about the trip was the buzz surrounding the office. The manager had recently been in touch with the NASDAQ about issuing a press release stating that the fund would be traded as a part of the exchange. This was a major devlopment for the fund since it has been around for so long and was still waiting for its big break to really start gaining assets. I was also given some gifts to go home with that can be seen below. As always, if you have any questions please feel free to contact me at email@example.com