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The pain of being audited

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October 2020  |  Model Audit

Nobody likes to be scrutinized, and to have a financial model audited is a very public form of scrutiny.

I have had my models audited many times, and it is not generally a fun experience.

My rational brain tells me that it has to be done and that a thorough audit is a good thing, but in my lizard brain, I still remember the anxiety of opening up the audit report, terrified that there will be material errors identified.

The anxiety was heightened by the fact that my boss, and client, and client’s boss would be opening the same report at the same time and would be straight on the phone, demanding answers if the audit had picked up any problems.

At Gridlines, we have all been modellers ourselves, and had our financial models audited, so we are sensitive to that pain, and we do all we can to minimise it.

 

Firstly

We like to get involved much earlier in the process than is typical for other model auditors. If we can get our hands on an early version of the model, we can find any big errors well before any numbers have been relied upon for decision making. This takes a lot of heat out of the situation immediately.

 

Secondly

We work collaboratively and let you know of issues as soon as we find them, so you do not have the anticipation, late in the process of opening up a report with a long list of material errors. We will raise them with you immediately on a call, armed with a clear view on materiality and with suggested resolutions.

 

Thirdly

We make sure that we do not overstate the materiality of a problem and cause panic. Often, issues raised in black and white, without a full explanation can look much worse than they are.

We are striving to do all we can to make the model audit process as smooth and as painless as possible for our clients and their advisors so that they can focus on winning and closing their deals.

To find out more please get in touch.

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Danny Leitch

Partner

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