Financial Model Review

1 day duration

Financial models are an integral part of the business decision-making process and our experience has taught us that 95% of financial models contain errors.  A thorough financial model review provides assurance on the model’s integrity and key information presented, from assumptions to outputs.

This course is designed to enable you to master the financial model process efficiently and effectively mitigate model error risk. By mastering these skills, you are preparing your financial models to withstand the utmost scrutiny.

In a combined seminar and practical workshop environment, our expert trainer walk you through how they review financial models with an inspection and analytical review.

You will learn about the three broad model review techniques (Inspection Review, Analytical Review and Replication).  Using relevant case studies to consolidate understanding of review techniques, you are guided through the most common type of errors found in models and how these can be best identified.

Mazars are the World’s Number 1 Model Auditor (Inframation). Our trainers are modelling professionals, performing independent model audits as part of their role. 

What you will take away from this course

  • A structured approach to reviewing a complex financial model
  • Gain confidence of picking up potential errors in financial models
  • Understanding of the in-built Microsoft Excel auditing functionality
  • Compelling insights from our award winning Model Audit team

Key learnings

  • Understand where and how to start a financial model review
  • Learn different approaches to financial modelling review and understand how this can uncover different types of errors
  • Acquire specialised skills to review models and apply these to real life case studies
  • Learn common errors that occur in complex financial models based on our review of over a 1,000 models

Is this programme for you?

This course is suitable for anyone who needs to build, review or analyse financial models. Typical attendees include Managers, Senior Managers and Associate Directors.

Pre-course knowledge

While no pre-course modelling knowledge is strictly required, it is expected that participants have a good handle on Excel prior to attending the course.

Upcoming

Thursday 11th November 2021

Asia Pacific, Digital classroom - APAC

Thursday 2nd December 2021

London, Europe

Thursday 9th December 2021

Europe, Middle East & Africa, Digital classroom - EMEA

Thursday 9th December 2021

Americas, Digital classroom - Americas

Course Agenda

Module 1 – Where to start when reviewing a complex financial model

Learning objective

  • Obtain an understanding of the principles of model review

Activities & exercises

  • Discuss how model risks manifest and how that can lead to problems
  • Understand how model risk can be mitigated through quality control processes
  • Learn about the different types of model reviews or model audits and why they are mandatory in certain sector

Module 2 – The three approaches to financial model review

Learning objective

  • Learn about the three different model review techniques (inspection, analytical review and replication)
  • Learn the most effective way to review complex formulas

Activities & exercises

  • Understand how to use Microsoft’s in-built add-ins such as Inquire, to review by inspection
  • Utilise Sparklines to see how patterns can identify errors as part of an analytical review of a model
  • Develop Delta Sheets in order to review sensitivities and scenarios in a model

Module 3 – Where the most common mistakes happen in financial models

Learning objective

  • Learn what are the most common type of errors in models

Activities & exercises

  • Review the most common errors found in models and how these can be identified
  • Understand how to avoid these common errors when building financial model
  • Discuss the importance of automated checks into models and how to incorporate these

Module 4 – Reviewing a real life case study financial model

Learning objective

  • Learn how to apply the financial model review techniques to a real life case study

Activities & exercises

  • Use model review techniques discussed and explain throughout the day on a real life case study
  • Discuss where to focus your efforts when there are time constraints
  • Identify key errors using the inspection and analytical review techniques

Contact us to find out more