Model Audit Services

We offer a comprehensive suite of financial model audit services

Corality has developed rigorous procedures in order to ensure the correctness of financial models. We are an expert model auditor, with wide-ranging experience across all major sectors globally. We differentiate ourselves by using a consultative approach, highly experienced staff, rigorous procedures and efficient communication of results.

Corality offers a comprehensive suite of financial model audit services, comprising:

• Formal financial model audit
• Independent model review
• Analytical model review
• Tax and accounting review
• Verification and documentation review
• Best practice review

Formal financial model audit

We provide wide-ranging expertise in financial model audits

Corality has a passion for best practice modelling techniques and error-reducing analysis. We work with our clients to help them build better models they can use for years to come – not just ticking the “Model Audit” box to achieve financial close. Due to our extensive experience from a broad range of industry sectors, we understand what banks need to achieve financial close. We have built our business based on perfect delivery, every time.

We deliver model audits for a wide range of sectors including:

• Corporate Finance
• Project Finance / PPP / PFI
• Mergers and Acquisitions
• Leveraged Finance
• Operational Models
• Feasibility studies
• Budgeting
• Private Equity

We not only perform analytical model reviews and manual cell-by-cell reviews, we also have the capacity to rebuild your models (‘shadow models’) to further investigate key modules such as Revenue, Debt calculations or CFADS.

Independent model review

We help you trust your financial models

Many organisations use a large number of complex financial models or spreadsheets for internal strategic decisions. The risk of errors in these financial or operational models is significant due to the lack of external review and the often shared ownership across departments. Corality can assist in increasing the confidence in your models and spreadsheets by performing an independent model review of your internal work prior to important decisions. An independent review of a financial model includes:

• Cell-by-cell review
• Evaluation of sensitivities
• Systematic exception reporting
• Documentation
• Suggestions of improvements

Analytical model review

We help you find costly mistakes before it’s too late

A high level analytical review of a financial model is recommended prior to using the model for decision making purposes. This is a time and cost efficient approach to finding costly mistakes before it is too late. As part of a high level analytical model review, we conduct the following analyses:

• Operational model output analysis
• Credit analysis of lending decisions
• Investment analysis
• Trend analysis in budgeting and forecasting
• Scenario evaluation

Tax and accounting review

We facilitate Tax and Accounting reviews for the due diligence process

Through our longstanding and strong relationships with global tax and accounting firms we can make the complete financial model due diligence an efficient process. Our relationships have been built over many years to ensure that you get a tax and accounting report of the highest quality and a ‘fair deal’ in all parts of the world. Tax and accounting model review includes:

• Enterprise Level taxes and income recognition
• Timing, TOFA, Div 243, Div 247, ITAA 1997, Div 6B and 6C
• Capital Duty, Stamp Duty, other indirect taxes that affect the financing structure
• Depreciation - Book vs. tax differences
• Capital allowances, Div 16D
• Leverage modelling – deductibility of financing costs, TOFA
• Debt vs Equity rules, thin capitalization, Pre-payment rules
• Available fraction of carry forward Tax Losses
• Continuity of Ownership Test (“COT”) and Same Business Test
• Confirmation of Corporate Tax Rate
• GST/VAT/Sales Tax, Customs Duty, PRRT
• Capital gains tax
• Withholding taxes on interest, dividends and royalties
• Franking credits, foreign tax credits/offsets

Verification and documentation review

We help you verify that your financial model correctly reflects project-critical documentation

Many structured finance investments are heavily based upon detailed documentation, contracts and agreements. Corality’s experienced transaction professionals assist our clients in verifying that all documents have been correctly reflected in the financial models, adding critical trust to the modelling process.

Our verification and documentation review includes:

• Term sheets
• Puchase contracts
• JV agreements
• Hedging documentation
• Offtake contracts
• Power purchase agreements
• Concession deeds
• Tender documents

Best practice review

We help you improve your financial models for years to come

Based on our extensive experience in the construction of financial models we can assist with practical advice on how to improve the integrity, flexibility and presentation of  your financiel models.

• Increased flexibility for more powerful analysis
• Increased transparency through integrity checks and balances
• Increased integrity and consistency through improved model architecture
• Easier to use models through improvements in User Interface and Executive Summaries
• Improved presentation with professional standardisation of Excel formatting
• More efficient macros through re-design of existing VBA code

Best practice financial modelling methodology - SMART

Corality’s financial modelling methodology, SMART, is a set of best practice guidelines, internationally applauded for effective and professional financial modelling. SMART meets the needs of decision-makers and financiers across all major project finance industries – it decreases model risk and results in robust, transparent and user-friendly models suitable for analysis by all stakeholders.

Read more about the SMART modelling methodology.

Corality is a full service analytical consulting firm. Read more about our modelling services and consulting services.

Download our Model Auditing Brochure