Industry Analysis

Moore, Brevan lead way as top groups sign up to SAS70 check


The Madoff scandal has raised the bar on due diligence, with hedge funds rushing to be more investor-friendly and a growing list of top firms undergoing a special audit of controls

In the wake of the Madoff scandal, the pressure for tougher due diligence from hedge fund investors has intensified dramatically. Faced with more demanding and concerned investors, leading hedge fund groups have been grappling with ways to demonstrate that their businesses - unlike Madoff - are indeed honest and above board, have appropriate controls in place, comply with rules and regulations, and truly generate the returns the managers are reporting.

Now it seems that one particular process - a US auditing procedure called a Statement on Auditing Standard 70 (generally referred to as a SAS70) - is starting