Mock Audit

This service simulates a routine regulatory audit, tailored to your firm’s specific jurisdiction and operations. Identifying gaps and areas for improvement now can save you time and resources during an actual examination.

Four Phases of the Mock Audit:

1. Pre-Exam:
   • Review of your Form U4, public information, and Form ADV for consistency and accuracy.
2. Mock Interview:
   • Simulates an examiner’s interview to help you and your team practice responding to regulatory questions.
3. Document Request:
   • We provide a realistic document request list, complete with deadlines and expectations, to test your ability to respond effectively to examiners.
4. Findings Letter:
   • You’ll receive a detailed findings letter outlining any identified failures, gaps, violations, and actionable suggestions for updates or corrective actions.
     • Additional Support: If your firm needs assistance implementing changes or updating policies and procedures, we can assist on an hourly basis.

Pricing

The cost of the Mock Audit service ranges from $2,500 to $5,000, depending on:

• Your firm’s jurisdiction (State of SEC).
• The number of employees.
• Engagement in activities that increase regulatory complexity or require heightened compliance supervision, such as:
  • Maintaining custody of client assets.
  • Advising private funds.
  • Advertising investment performance.

Why Go Through a Mock Audit?

Proactively identifying and addressing compliance gaps can help you mitigate and/or get in front of potential regulatory issues as well as identify areas of weakness that can be improved before your first or next audit arrives! This can help demonstrate to regulators your commitment to a strong compliance culture. Our experienced consultants ensure the process is thorough and constructive, giving you the confidence to face real regulatory exams.

How much time does it take?

A mock audit can take 6-12 weeks from start to finish and may involve at least several hours of your time throughout the process, but will help you better prepare for a full routine audit when the time comes. Again, a mock audit is designed to simulate a typical routine exam of our firm in compliance with applicable regulation and your firm policies and procedures - we will ask for a series of documentation with realistic deadlines and in the format and manner that this information is most commonly requested in.

• If you are interested in having your compliance policies and procedures reviewed in relation to your firm's current operations but are not ready for a mock audit, check out our Compliance Program Review service under Premium Compliance Services as it may be a good start and provide the direction and support needed to help you assess the strength of your compliance program management and navigate any changes with greater confidence that may result from the review.