How funds can accelerate growth with data-driven audits (2025 edition)
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For venture capital funds, audit season presents an opportunity to evaluate operational practices and improve investor reporting. In recent years, the role of data-driven audits has shifted from a compliance exercise to a strategic function with technology and structured processes playing a bigger role than ever before.
A broader view of audit readiness
Annual audits required by Limited Partnership Agreements (LPA) are expected by institutional investors. However, beyond meeting LPA obligations, audits also offer a way to build trust and ensure transparency across internal and external stakeholders.
Preparation continues to be key for reducing friction during the audit cycle. As outlined in Aumni’s Audit Preparation Checklist, funds can take steps well in advance to collect key documentation, ensure accurate cap table data, and prepare portfolio company financials. Having these materials organized ahead of time can shorten timelines and reduce the need for extensive back-and-forth with auditors.
Using technology to reduce complexity
Modern platforms have created opportunities for funds to centralize and structure data from core documents. Tools like Aumni enable finance teams and their auditors to access investment terms, legal structures, and ownership information in one place, minimizing manual review and version control issues.
In this interview, venture capital fund Section 32’s COO & CFO, Nina Labatt, noted that providing auditors with limited, read-only access to Aumni allowed them to independently verify key terms and reduce time spent on routine questions. This level of transparency also helped auditors contextualize transactions and assess valuation assumptions earlier in the process.
Standardizing communication and expectations
Early engagement with auditors remains a common theme. Setting expectations at the outset – particularly around valuation approaches, recent transactions, and any governance changes – can reduce surprises and help ensure that the audit moves forward on schedule.
As regulatory expectations evolve, particularly for Registered Investment Advisors, maintaining clear audit trails and proper documentation have become even more important. This includes not just financial records, but also communication logs and disclosures shared with LPs.
By combining proactive communication with reliable, structured data, funds can reduce the effort and uncertainty that often comes with audit season.
Discover how venture capital firm Floodgate saved 20+ hours in audit prep with Aumni: Learn more.
Interested in learning more about how Aumni can help with your audit season? Get a demo.
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