In which financial process does an asset manager often conduct formal evaluations of financial integrity?

The financial process where an asset manager conducts formal evaluations of financial integrity is the audit. An audit is a systematic examination of financial records and statements to ensure accuracy, compliance with regulations, and to provide an opinion on the overall financial condition of an organization.

During an audit, asset managers look for discrepancies, verify assets and liabilities, assess internal controls, and ensure that financial reporting is truthful and fair. This process is crucial for maintaining transparency and trust among stakeholders, as it provides a comprehensive review of the financial practices and reinforces the integrity of financial statements.

While reviews, assessments, and investigations may involve some level of scrutiny, they do not necessarily include the formalized and comprehensive approach of an audit, which is specifically designed to assess financial integrity rigorously. Reviews may be less formal and not fully in-depth compared to audits. Assessments typically focus on evaluating performance or fulfilling criteria rather than rigorously verifying financial integrity. Investigations are more specific to uncovering fraud or irregularities when there is suspicion, rather than routinely assessing financial integrity.