Course Introduction
The Fund Administration and NAV Calculation Audit Training Course provides a practical framework for auditing fund administration processes, fund accounting, net asset value calculations, investor transactions, portfolio valuation, income recognition, expenses, fees, reconciliations, and financial reporting. The course equips auditors and fund professionals with techniques for assessing the accuracy, completeness, integrity, and control of fund administration activities.
The course examines the complete fund administration lifecycle, from investment transaction processing and portfolio accounting through valuation, income recognition, expense accruals, fee calculations, investor subscriptions and redemptions, NAV preparation, review, approval, publication, and reporting. Participants learn how to identify critical control points and evaluate whether fund records and NAV calculations are supported by reliable evidence.
Particular emphasis is placed on NAV calculation auditing. Participants examine fund holdings, market prices, accrued income, cash balances, liabilities, management fees, performance fees, administration expenses, taxes, investor capital, foreign exchange movements, and other components affecting NAV. The course demonstrates how auditors can independently recalculate NAV components, investigate variances, test valuation inputs, and evaluate whether errors have been appropriately identified and corrected.
The training also addresses risks arising from complex investment portfolios, illiquid securities, pricing uncertainty, stale prices, corporate actions, foreign currency movements, fee arrangements, subscription and redemption processing, investor allocations, and manual adjustments. Participants develop professional skepticism and practical procedures for identifying NAV errors, valuation inconsistencies, unauthorized adjustments, inaccurate investor records, and potential financial or reputational consequences.
Modern fund administration increasingly depends on automated fund accounting platforms, portfolio management systems, transfer agency applications, custody interfaces, pricing feeds, APIs, robotic process automation, and data analytics. The course therefore considers system interfaces, automated calculations, access controls, data integrity, cybersecurity, artificial intelligence, exception monitoring, and operational resilience within fund administration environments.
Through practical exercises and integrated case studies, participants develop the ability to audit fund administration and NAV processes from transaction capture through final investor reporting. They learn to reconcile fund records, independently test NAV calculations, verify portfolio valuations, assess fees and expenses, review investor transactions, investigate exceptions, document audit evidence, and formulate practical recommendations that strengthen NAV accuracy and fund governance.
Duration
5 days
Who Should Attend
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Internal auditors responsible for fund administration, investment operations, and asset management audits.
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External auditors auditing investment funds, fund accounting, NAV calculations, and financial statements.
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Fund administrators responsible for NAV preparation, fund accounting, and investor reporting.
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Fund accountants responsible for portfolio accounting, reconciliations, accruals, and NAV calculations.
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Asset managers responsible for investment portfolio administration and fund governance.
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Investment operations professionals managing transactions, valuations, settlements, and corporate actions.
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Transfer agency professionals handling subscriptions, redemptions, investor records, and allocations.
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Risk managers assessing valuation, operational, liquidity, financial, and fund administration risks.
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Compliance professionals monitoring fund policies, investment restrictions, and operational controls.
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Finance professionals responsible for fund financial reporting and accounting processes.
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Custody professionals involved in fund asset verification, settlement, and reconciliation.
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Valuation professionals responsible for pricing securities and supporting NAV calculations.
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Information technology auditors reviewing fund administration systems, interfaces, access, and automated controls.
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Fraud and investigation professionals examining NAV manipulation, unauthorized transactions, and financial irregularities.
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Investment and fund professionals seeking practical expertise in fund administration and NAV calculation auditing.
Course Objectives
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Develop a comprehensive understanding of fund administration, fund accounting, NAV calculation processes, investor transactions, and related audit risks.
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Evaluate fund governance, accounting policies, valuation procedures, service-provider responsibilities, delegated authorities, and control frameworks.
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Audit portfolio transaction processing, fund accounting entries, cash movements, income recognition, expenses, fees, and investor activity.
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Independently recalculate NAV components and assess the accuracy, completeness, consistency, and reliability of the final NAV.
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Evaluate valuation controls over listed and unlisted securities, market prices, pricing sources, models, estimates, and illiquid investments.
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Audit management fees, performance fees, administration expenses, custody costs, taxes, accruals, and other liabilities affecting fund NAV.
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Reconcile fund accounting records with custodian statements, portfolio systems, bank accounts, broker records, investor registers, and general ledger balances.
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Assess subscription, redemption, transfer, allocation, investor pricing, and cut-off controls to identify errors and potential investor inequities.
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Apply data analytics and technology-assisted procedures to NAV populations, portfolio holdings, pricing data, investor transactions, and expense records.
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Develop evidence-based audit findings and practical recommendations that strengthen NAV accuracy, valuation governance, investor protection, financial reporting, and operational resilience.
Comprehensive Course Outline
Module 1: Fund Administration and NAV Audit Fundamentals
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Understanding fund structures, fund administrators, investment managers, custodians, transfer agents, trustees, and other service providers.
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Mapping the fund administration lifecycle from transaction processing and valuation through accounting, NAV calculation, investor activity, and reporting.
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Identifying valuation, operational, financial, liquidity, investor, fraud, compliance, and technology risks within fund administration.
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Developing risk-based audit plans focused on NAV materiality, complex investments, critical processes, service providers, and significant controls.
Module 2: Fund Governance, Accounting Policies, and Internal Controls
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Evaluating fund governance structures, accounting policies, valuation policies, delegated responsibilities, and oversight arrangements.
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Assessing segregation of duties among investment management, fund accounting, valuation, custody, transfer agency, NAV review, and approval functions.
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Testing controls over fund accounting entries, approval workflows, manual adjustments, exception handling, and management review.
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Evaluating administrator oversight, service-level agreements, control reports, issue escalation, and periodic control assessments.
Module 3: Fund Accounting and Transaction Processing
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Auditing purchases, sales, transfers, settlements, corporate actions, income receipts, expenses, and other fund accounting transactions.
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Testing transaction dates, settlement dates, quantities, prices, currencies, counterparties, fees, and accounting classifications.
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Evaluating completeness and accuracy of transaction capture between portfolio management, custody, fund accounting, and general ledger systems.
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Investigating failed settlements, duplicate transactions, manual journals, unusual adjustments, stale entries, and unexplained fund accounting differences.
Module 4: NAV Calculation Methodology and Independent Recalculation
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Understanding NAV components including assets, liabilities, accrued income, expenses, cash, investment values, and investor capital.
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Performing independent recalculation of NAV using portfolio holdings, market values, cash balances, receivables, payables, and accrued amounts.
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Testing NAV calculation dates, valuation points, pricing cut-off, rounding, unit calculations, and distribution or allocation mechanisms.
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Investigating NAV variances, calculation errors, manual overrides, unexplained adjustments, and differences between preliminary and final NAV.
Module 5: Investment Valuation and Pricing Controls
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Auditing valuation of listed securities using independent market prices, pricing sources, valuation dates, and market data.
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Evaluating valuation methodologies for unlisted, illiquid, complex, or hard-to-price investments and assessing key assumptions.
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Testing price overrides, stale prices, valuation adjustments, fair value inputs, independent price verification, and escalation of pricing exceptions.
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Assessing valuation uncertainty, model risk, management judgment, and controls designed to prevent inappropriate or biased valuations.
Module 6: Fund Income, Expenses, Fees, and Accruals
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Recalculating interest, dividends, realized gains, unrealized gains, foreign exchange movements, and other investment income included in fund accounting.
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Auditing management fees, performance fees, administration fees, custody fees, audit expenses, taxes, and other fund liabilities.
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Testing fee rates, fee bases, calculation periods, contractual terms, expense allocations, accruals, reversals, and payment records.
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Investigating incorrect expense allocations, duplicate charges, unsupported accruals, omitted liabilities, unusual adjustments, and manual fee overrides.
Module 7: Subscriptions, Redemptions, and Investor Accounting
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Auditing investor subscriptions, redemptions, transfers, unit issuance, unit cancellation, and investor capital movements.
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Testing investor transaction dates, pricing dates, NAV application, cash receipts, payment instructions, and transaction authorization.
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Evaluating investor allocation controls, equalization mechanisms where applicable, cut-off procedures, and prevention of preferential treatment.
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Reconciling investor registers with transfer agency records, fund accounting systems, bank receipts, redemption payments, and NAV records.
Module 8: Reconciliations, Service Providers, and Operational Risk
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Reconciling fund accounting records with custodian statements, bank accounts, portfolio systems, broker confirmations, investor registers, and general ledger records.
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Evaluating cash, investment, income, expense, investor, and intercompany reconciliations and the resolution of reconciling items.
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Assessing third-party administrator, custodian, transfer agent, pricing vendor, and other service-provider controls and oversight mechanisms.
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Identifying fraud, operational resilience, cybersecurity, business continuity, system interface, and outsourcing risks affecting fund administration.
Module 9: Fund Administration Technology and Data Analytics
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Auditing fund accounting platforms, portfolio systems, transfer agency applications, pricing feeds, custody interfaces, APIs, and automated NAV calculations.
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Evaluating user access, privileged access, system changes, automated calculations, interface controls, audit trails, and data integrity.
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Applying data analytics to identify unusual NAV movements, pricing anomalies, duplicate transactions, abnormal fees, investor activity exceptions, and reconciliation differences.
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Developing automated NAV checks, exception dashboards, continuous monitoring procedures, and analytical tests for fund administration assurance.
Module 10: NAV Audit Reporting, Remediation, and Practical Case Studies
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Preparing audit findings that clearly connect NAV and fund administration deficiencies to evidence, financial impact, investor consequences, root causes, and control weaknesses.
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Evaluating case studies involving NAV errors, valuation discrepancies, incorrect fees, investor allocation issues, reconciliation failures, and system processing errors.
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Developing corrective actions addressing valuation, NAV calculation, fund accounting, investor transactions, reconciliations, service-provider oversight, and technology controls.
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Performing audit follow-up, remediation validation, error impact assessment, escalation, closure assessment, and reporting of significant or recurring fund administration deficiencies.
Training Approach
This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.
Tailor-Made Course
This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808
Training Venue
The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.
Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant
Certification
Participants will be issued with Upskill certificate upon completion of this course.
Airport Pickup and Accommodation
Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808
Terms of Payment:
Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.
