Top 10 errors in financial models (and how to fix them)

Tuesday 24th September 2019

Webinar by Ben Kwan & Nidhi Kapania

Mazars has audited over 1,000 financial models for clients in every corner of the world. The specific calculations are of course different in every sector, from renewables and real estate to mining and infrastructure. While of course mistakes are made in the industry specific part of a model, a very large component of material errors are made in areas which as required across all sectors.

This webinar aims to highlight the areas of a financial model where we typically find a higher risk of error. We will highlight these areas with some specific examples, and propose alternative approached which reduce the risk of error.

Some of the areas of financial modelling which will be discussed:

  • Dynamic timing calculations (stub periods, refinancing, interest calculations)
  • Financial modelling of Term Sheets
  • Financial Statements, in particular ‘how incorrect balance sheets are made to balance incorrectly’
  • Negative balances on accounts, including cash, tax, debt, gst, vat, etc.
  • Unused assumptions and the potential impact on calculations
  • Sloppy fingers late at night vs ‘the log sheet’
    Off-sheet references gone wrong.

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