Reviewing Financial Models – 1 or 1½ Days

Spreadsheets are one of the most commonly used tools in today’s business environment. Many people rely on spreadsheets to answer their business problems. The danger is that many, if not most, of these spreadsheets contain errors. Some of these errors will not affect the conclusions, but others will. How can people be sure that their own spreadsheets do not fall into the second category?

To answer this question, Coe & Co has developed a model review course that shows delegates how to locate and identify all the errors contained in a spreadsheet using a practical, hands-on approach.

The methodology lectured starts by showing delegates how to carry out a review using only the features found in Excel but then goes on to show some of the benefits of using add-in spreadsheet audit software tools.

The Model Review course is structured along the same lines as other Coe & Co courses, with a mix of lectured material and hands-on exercises. The overall balance is in favour of hands on sessions. This is because the most effective way of learning any financial modelling technique is by actually doing it yourself, but with expert guidance available when required.

Course contents:

• Objectives of a model review
• Planning a review: Fact finding, Risk factors, Scope
• Initial review steps
• Documentation
• High Level Review
• Manual calculation checks
• Detailed logic test using Excel's own features
• Sensitivity tests
• Ranking errors according to their impact on the model's results
• Discussion of findings with the model developer
• Re-review of amended model
• Reporting the results of the review: What comfort can be given
• Using spreadsheet audit software: Faster & more thorough, Need to purchase in advance
• Course summary

Who should attend this course?

This course is designed for people who want to ensure that they can locate and correct any errors a model may contain. This covers accountants who are asked by their clients to provide comfort about the quality and accuracy of a financial model. However, the skills taught on this course are equally critical in any commercial organisation that places reliance on numbers generated by spreadsheets.

Course length and pre-course requirements

The Reviewing Financial Models course is normally intended for people who have attended "Essential Financial Modelling" since they will already have learned what methodology should be used to write best practice models. If this is the case then the course duration is one day.

If course attendees have not previously attended "Financial Modelling 1 - Best Practice Modelling" then the course needs to be extended include a brief summary of best practice modelling points. This adds a half day taking the overall course duration up to one and a half days.

What will you gain from this course?

By the end of the course you will have seen and practiced using a very efficient model review methodology. The benefits to you and your organisation are you will have gained:

• A method of identifying all of the errors in your financial models, without missing any
• The ability to rank these errors according to their potential impact on the model's results
• Experience of checking that identified errors have been corrected
• The ability to review models thoroughly but only taking the minimum time possible