Connect with us Independent, SEC-Compliant Fund Audits — Delivered On Time, Every Time.
- PCAOB Registered Since 2009
- 100+ Audit Clients
- 400+ Professionals
The SEC doesn’t accept late audits. Neither do your investors.
Managing an investment fund in the U.S. comes with more than just generating returns — it also means meeting strict SEC audit and reporting requirements. Once your fund crosses certain regulatory thresholds, an independent audit may become mandatory under U.S. securities laws. Missing filing deadlines or submitting non-compliant financial statements can lead to SEC scrutiny, penalties, investor concerns, and delays in fundraising or capital deployment.
At Mercurius, we deliver PCAOB registered fund audits that satisfy SEC rules, hold up to investor scrutiny, and get filed before your deadline.
What is a Fund Audit in the USA?
A fund audit is an independent review of your fund’s financial statements and valuations. It confirms that everything is presented fairly under U.S. GAAP and meets SEC requirements.
A well-executed fund audit delivers five key benefits:
- Verified NAV — an independent check that your fair value of assets.
- ASC 820 valuation testing — validation of how you value as per Level 1, Level 2 and Level 3 assets.
- SEC Filings — Ensuring all mandatory SEC filings are completed accurately and submitted on time before deadlines, helping businesses avoid penalties and compliance risks.
- Fee & carry verification — confirmation that management fees and carried interest match your LPA
- Investor trust — the third-party assurance LPs need before committing more capital
Which Public funds must be audited?
Under the Investment Company Act of 1940, the following SEC-registered investment companies must obtain an annual independent audit from a PCAOB-registered auditor — regardless of size:
Mutual Funds
Exchange Traded Funds (ETFs)
Unit Investment Trusts (UITs)
Closed End Funds
When Does a Fund Audit Become Mandatory?
Audit requirement as per applicable rule
A fund audit is mandatory if AUM is over $150 million. Under Investment Company Act of 1940
Our professional audit services include
The SEC does not allow just any firm to audit a fund. To audit an SEC-registered investment fund, the auditor must meet all of these conditions:
- PCAOB Registered — registered with the Public Company Accounting Oversight Board (PCAOB) and subject to its regular inspections.
- Independent under SEC Regulation S-X Rule 2-01(b) and (c) — no prohibited financial, employment, or business relationships with the fund or its adviser.
- Technically Qualified under PCAOB standards, with audit-team experience in investment company accounting (ASC 946) and fair value (ASC 820).
- Properly Engaged — selected by the fund’s audit committee and ratified by the independent directors under Section 32(a) of the Investment Company Act of 1940.
- Authorized to Issue a PCAOB-Compliant Audit Report that can be filed with the SEC and distributed to shareholders.
Disqualifying Conditions: An auditor cannot serve your fund if they have:
- Provided bookkeeping, valuation, or internal-audit outsourcing to the fund or its adviser
- A direct financial interest in the fund
- A close family member in an accounting or financial-reporting role at the fund
Mercurius has been PCAOB-registered since 2009 and is fully eligible to audit SEC-registered mutual funds, ETFs, UITs, and closed-end funds.
Critical SEC Filing Deadlines
Missing an SEC audit deadline can trigger enforcement action and fines — even when the audit itself is clean. Keep these dates on your calendar:
| Filing / Report | Deadline |
|---|---|
| Annual shareholder report (Rule 30e-1) | Sent to shareholders within 60 days of fiscal year-end |
| Form N-CSR (annual) | Filed with the SEC within 10 days of transmitting the annual shareholder report |
| Form N-CEN (annual census report) | Filed within 75 days of fiscal year-end (UITs: within 75 days of calendar year-end) |
| Semi-annual shareholder report | Sent within 60 days of the mid-year reporting period |
| Form N-CSR (semi-annual) | Filed within 10 days of transmitting the semi-annual shareholder report |
Our approach: We work backwards from your deadline and typically begin interim procedures 60–90 days before year-end — so your audit is never a last-minute scramble.
Our Deliverables
When you engage Mercurius for a fund audit, here is exactly what you receive:
- Audited Financial Statements under U.S. GAAP — Statement of Assets & Liabilities, Statement of Operations, Statement of Changes in Net Assets, and Schedule of Investments (ASC 946 for investment companies, ASC 820 for fair value)
- PCAOB / GAAS-Compliant Audit Report — clean, unqualified opinion where supportable
- Financial Highlights including per-share data, expense ratios, and total return
- NAV & Fair Value Testing Workpapers documenting our valuation procedures
- Fee, Expense & Distribution Verification reconciled to your prospectus and offering documents
- SEC Filing Support for Form N-CSR, Form N-CEN, and other Investment Company Act filings
Our 4-Step Fund Audit Process
A structured, deadline-driven approach designed to minimize disruption for your operations team.
- Planning & Scoping We review your PPM, LPA, side letters, and prior audit files. Timeline anchored to your 120 or 180-day deadline.
- Risk Assessment We identify high-risk areas — valuation, related-party transactions, capital calls, fee allocations, and complex instruments.
- Fieldwork & Testing Substantive testing on valuations (ASC 820), investor allocations, expense allocations, and capital activity.
- Reporting & Delivery A clean PCAOB-compliant audit report, delivered to your LPs within the regulatory window, with support on Form ADV-E or N-CSR filings.
Our 4-Step Fund Audit Process
A structured, deadline-driven approach designed to minimize disruption for your operations team.
Planning & Scoping
We review your PPM, LPA, side letters, and prior audit files. Timeline anchored to your 120 or 180-day deadline.
Risk Assessment
We identify high-risk areas — valuation, related-party transactions, capital calls, fee allocations, and complex instruments.
Fieldwork & Testing
Substantive testing on valuations (ASC 820), investor allocations, expense allocations, and capital activity.
Reporting & Delivery
A clean PCAOB-compliant audit report, delivered to your LPs within the regulatory window, with support on Form ADV-E or N-CSR filings.
Why Mercurius
PCAOB Registered Since 2009
17+ years of audit experience with SEC registrants
Big Four Trained Partners
with 20+ years of fund audit experience
Global Reach
750+ clients across the US, UK, Canada, Singapore, UAE, and India
Cost-Effective Pricing
hybrid US–India delivery model gives you Big Four quality at a fraction of the cost
On-Time, Every Time
strong track record of meeting SEC and shareholder report deadlines
Partner-Led Engagements
every audit is personally led by a partner; never lost in a faceless team
Enterprise-Grade Data Security
strict confidentiality and secure data handling
Trusted by SEC Registrants
fund sponsors, advisers, and boards worldwide
Ready to Get Started?
If you're looking for a PCAOB-registered firm who delivers on time, communicates clearly, and understands SEC rules end-to-end — let's talk.
Schedule Your Free Fund Audit Consultation
Industries & Fund Strategies We Audit
Our fund audit practice focuses exclusively on SEC-registered investment funds and advisers. Whether your fund invests in publicly traded equities, complex fixed-income instruments, hedge funds, or other alternative assets, our professionals understand the unique SEC compliance, valuation, disclosure, and financial reporting requirements involved. We know where the key audit and regulatory risks arise — helping investment funds maintain transparency, accuracy, and investor confidence.
Equity Funds
- Large-cap, mid-cap, and small-cap funds
- Growth, value, and blend strategies
- Sector & thematic funds — Technology, Healthcare, Financials, Energy, Consumer
- International, global, and emerging market funds
- Index funds and equity ETFs
Alternative & Specialty Funds
- Interval funds and tender-offer funds
- Business Development Companies (BDCs)
- Commodity pool and managed futures funds
- Hedge fund-of-funds (40 Act registered)
- Digital asset and cryptocurrency funds
- Private equity and venture capital fund audits (under Custody Rule)
Fixed Income Funds
- Government, treasury, and sovereign bond funds
- Corporate bond funds (investment grade and high yield)
- Municipal bond funds
- Mortgage-backed and asset-backed securities funds
- Short-duration and ultra-short bond funds
ESG & Thematic Funds
- ESG and sustainable investing funds
- Impact investing funds
- Clean energy and climate-focused funds
- Faith-based and values-aligned funds
Money Market & Cash Strategies
- Government money market funds
- Prime money market funds
- Tax-exempt money market funds
- Short-term Treasury and ultra-short funds
Real Estate & REIT Funds
- Publicly traded REITs and REIT ETFs
- Non-traded REITs
- Mortgage REIT funds
- Real estate investment funds
Multi-Asset & Lifecycle Funds
- Target-date and lifecycle funds
- Balanced and asset allocation funds
- Tactical allocation funds
- Fund-of-funds structures
Don’t see your strategy listed? We’ve almost certainly audited it. Talk to a partner →
FAQs
Every SEC-registered investment company — including mutual funds, ETFs, UITs, and closed-end funds — must obtain an annual independent audit by a PCAOB-registered auditor under the Investment Company Act of 1940.
The SEC requires fund auditors to be registered with and regularly inspected by the PCAOB. This ensures the auditor follows high-quality, consistent standards. Mercurius has been PCAOB-registered since 2009.
U.S. GAAP — specifically ASC 946 (Financial Services – Investment Companies) and ASC 820 (Fair Value Measurement). If your books are kept under IFRS or another framework, we will help you reconcile to U.S. GAAP, as required by the SEC.
Under Section 32(a) of the Investment Company Act, the auditor must be selected by the fund's audit committee and ratified by a majority of the independent directors.
Fees depend on fund size, complexity, asset types, and number of investments. Because of our hybrid delivery model, our pricing is typically more cost-effective than a comparable US-only firm — without compromising PCAOB quality.
Yes. We frequently provide audit support, workpaper preparation, and back-office services to U.S. CPA firms that need extra capacity during busy season.
Missed deadlines can lead to SEC enforcement actions, monetary penalties, and reputational damage. Mercurius builds a compliance calendar with you and tracks every milestone so you never miss a filing.
