KPMG's Dan Jones on fund audit readiness for 2025

I just published a new article on our blog exploring the critical practices that separate smooth audit experiences from painful ones in private equity fund accounting. Fair value reporting isn't just about checking compliance boxes—it's a competitive advantage when executed properly. In my experience working with funds of all sizes, I've found that preparing ASC 820-compliant valuation memos and finalizing the Schedule of Investments at least 30 days before audit kickoff can dramatically reduce friction. Perhaps most importantly, the best funds don't just survive audit season—they build repeatable, scalable processes that make each reporting cycle more efficient than the last. Check out the full breakdown of all 7 best practices here: https://lnkd.in/gZH7fUWb How is your fund preparing for upcoming audit cycles? I'd love to hear which practices have made the biggest difference for your team. #PrivateEquity #FundAccounting #ASC820 #FairValue #Valuations #AuditPrep https://lnkd.in/gZH7fUWb

Just published a new article on our Meld Valuation blog that I'm particularly excited to share: "Private Equity Fund Accounting: 7 Best Fair Value Reporting Practices." In my experience working with PE firms, I've found that fair value reporting isn't just a compliance checkbox—it's a competitive advantage when done properly. Poor execution creates friction; excellence creates trust. Two practices I've seen make the biggest difference: 1. Finalizing your Schedule of Investments at least 30 days before audit kickoff (aim for 90%+ completion) 2. Ensuring all material investments (>5% of NAV) have updated fair value memos that explicitly document methodology, inputs, and rationale The most successful funds don't just survive audit season—they build repeatable, scalable processes that bring clarity all year round. Are you confident your firm's valuation documentation would withstand heightened scrutiny in today's environment? What's your biggest fair value reporting challenge? Read the full article: https://lnkd.in/gZH7fUWb #PrivateEquity #FundAccounting #ASC820 #Valuation #AuditReadiness https://lnkd.in/gZH7fUWb

Year-end audit season is approaching—are you ready? Aumni’s Audit Preparation Checklist helps finance and reporting teams stay organized, streamline document collection, and maintain compliance throughout the audit process. It uncovers:  - How to efficiently collect and organize investment documents - Steps for accurate cap table and ownership updates - Best practices for gathering KPIs and financial statements - Guidance on reviewing #valuation policies and generating in-house or independent valuations Stay proactive and make audit season seamless. Download the checklist: https://lnkd.in/eAKuZKdK #VentureCapital #Audit #FundManagement J.P. Morgan

Beyond the audit: reframing IPO readiness For many chief execs and finance leads, preparing for an IPO is too often treated as a supersized audit. In truth, pristine financials are only the entry ticket. What the public markets ultimately price is belief, discipline, and disclosure. As Forbes recently argued, #IPOreadiness for larger issuers is a transformation that extends across the entire enterprise. For emerging growth companies, however, the priority is audit readiness done properly: GAAP-compliant numbers, sound disclosure practice and an audit committee able to withstand PCAOB and SEC scrutiny. Fail here, and the market window closes; succeed, and the platform is set for governance and investor relations maturity to follow. The real risk lies not in the numbers but in the space between story and structure. Misaligned leadership, a vague equity narrative, light-touch governance or a culture that jars with official filings can all erode credibility. That is where an external perspective proves valuable. The IPO Readiness and Credibility Assessment delivers real-time metrics across governance, narrative and market signals, highlighting potential gaps before diligence begins. Within a fortnight, leadership teams receive a quantified view and a focused action path — a complement to audit work, not a replacement. For those preparing to uplist or file an S-1, the suggested sequence is clear: audit first, then scale what is needed. Read the Forbes article for the full case, and explore the assessment if those “soft” gaps sound uncomfortably familiar. Links in comments👇

Brand as the operating system for IPO readiness From us to you Interest in our Brand Clarity Assessment (BCA) surfaced a simple point: an audit gets you through the door; belief keeps you in the room. Our brand-led IPO Readiness and Credibility Assessment provides a practical approach to embedding narrative, governance, and disclosure as a disciplined operation. Why readiness is also a #brand conversation Clean historicals matter. But they do not, on their own, build conviction about what comes next. Markets price credibility when story meets structure and disclosures prove both with steady regularity. Therefore, readiness is as much a brand discipline as it is a finance requirement. By brand, think leadership philosophy expressed as enterprise narrative: what you believe, how you behave, and how you work. A working system for boards Designed for boards and executive teams in MENA and ASEAN preparing for local or international listings, our assessment is a system to run before, during and after an #IPO. It keeps strategy, conduct, and communications aligned so that momentum is not lost once the bell rings. 🔔 How to sequence the work – Secure the audit; establish a clean record; – Scale the brand system; align the equity story, governance behaviours and market communications; and – Sustain discipline; reduce last-mile risk, narrow the gap between plans and promises, and give investors a clear reason to trust performance that repeats. Done well, this is not only about a single filing but about proving that the business can explain, deliver and disclose with the same rhythm, time after time. Repeatability is what markets reward. 🥳 Closing note Audits prove the past. #BrandOS earns belief in the future. For leadership teams in the region, the sequence is clear: secure the audit; then scale the story, the supporting behaviours, and the disclosures that show strategy in action. When story, scaffolding and shopfront move together, credibility compounds. If gaps persist, commission a short, independent diagnostic to surface them quickly. Speed to clarity beats speed to filing, and travels well across whichever market you choose. #Articulate #Amplify #Accelerate

When independence collapses, governance follows. NZX’s censure of Being AI showed how quickly that can happen: 2 independent directors resigned, the Audit Committee lost quorum, and trading was suspended for two months: breaching 5 core governance rules on Board composition, independence, and financial expertise. Under NZX Listing Rule 2.1.1(c), Boards must have at least 2 independent directors at all times. If a director’s independence changes, Rule 2.6.3 requires prompt notification to NZX: independence must be monitored, not assumed. It’s a standing obligation, not a quarterly check-in. Three questions every Chair and CEO should ask today: A. If 2 independents resigned tonight, could the Board still meet its Listing Rule requirements? B. Could we clearly explain how each director’s independence was determined? C. Do we actively verify ongoing compliance, or rely on assumptions between reporting cycles? For unlisted boards, the principles still apply. Independence, quorum, and oversight aren’t NZX inventions: they’re the backbone of sound governance anywhere. Whether reporting to markets, shareholders, or stakeholders, the discipline is the same: maintain functional independence, preserve continuity, and ensure financial competence. Governance cracks rarely come from bad intent: they come from thin succession planning and gaps in oversight. The best Boards test their frameworks before they’re tested by events. Governance isn’t proven once: it’s maintained continuously. Strong Boards plan succession for governance as well as leadership.

To go public on Nasdaq, a Board of Directors isn’t enough. Your company needs an Audit Committee. Here’s what that means (straight from Nasdaq Rule 5605(c)): • Your Audit Committee must be made up only of independent directors. • It must have at least 3 members, each able to read and understand financial statements. • At least 1 member must be considered “financially sophisticated” (for example, with prior accounting or financial management experience). It may sound technical, but the bottom line is simple: Nasdaq wants investors to trust that your company’s financials are being reviewed by people who are independent, qualified, and experienced. So, if you’re preparing for an IPO, making sure your Audit Committee checks these boxes is critical.

🏛️ SEC Filings & Fund Financial Reporting SEC filings like SEC Form 10-K, SEC Form 10-Q, and SEC Form 8-K shape how funds report financials. ✨ Why It Matters for Fund Financial Reporting Teams: Regulatory Alignment: Financial reporting must align with SEC disclosure requirements, ensuring transparency and investor confidence. Timely Close Cycles: Strict filing deadlines drive accelerated month-end and quarter-end closes, requiring tight coordination between fund accounting, reporting, and audit teams. Disclosure Accuracy: Funds must maintain robust internal controls to ensure numbers reported in financial statements tie seamlessly to filings. Narrative & Analytical Support: Beyond numbers, reporting teams help draft MD&A (Management’s Discussion & Analysis) and footnotes, supporting investor communication. Audit & Review Readiness: Filings are subject to review by external auditors and regulators, reinforcing the need for precise documentation and reconciliations. 📊 Why it matters summary: Drives faster month/quarter-end closes. Requires strict disclosure accuracy & controls. Enhances transparency for investors. Demands close coordination across accounting, legal & audit. Mastering SEC timelines and disclosures builds credibility and keeps funds fully compliant. #FundAccounting #FinancialReporting #SECFilings #PrivateEquity #HedgeFunds #Finance #Compliance #RegulatoryReporting

Just published a new article on the Meld Valuation blog that I'm excited to share with my PE fund network. In private equity fund accounting, fair value reporting isn't just about checking compliance boxes—it's a competitive advantage when done right. After working with dozens of funds through audit season, I've compiled our 7 best practices for ASC 820 reporting that actually minimize audit headaches. Two game-changers I've seen: • Finalizing 90%+ of your Schedule of Investments at least 30 days before audit kickoff • Ensuring 100% of material investments have updated fair value memos with proper calibration to recent transactions These steps alone can dramatically reduce back-and-forth with your audit team and prevent valuation challenges. What's your biggest pain point during audit season? Are you starting preparations early enough? Read the full article here: https://lnkd.in/gZH7fUWb #privateequity #valuation #ASC820 #fundaccounting #auditprep https://lnkd.in/gZH7fUWb

The regulator reviewed one super fund audit by each of the five largest accounting firms, and only KPMG escaped censure over the valuation of unlisted assets. Read more: https://ebx.sh/3gNaKL