Financial Models and Forecasts
Major tasks of an enterprise planning system are successive coordination among the business divisions and feasibility analysis as to the achievement of the operating goals. From the viewpoint of financial management, equally important are provision of resources for business development and scheduling of cash-flow gaps. It is in these areas that our service Review of Financial Models and Forecasts comes handy; we perform the role of a Reporting Accountant. The major beneficiaries of this service are the top management, investment banks and equity funds – the players who commit substantial financial and time resources to the business. Trust and comfort with the information provided by the company becomes paramount hence the role of an unbiased independent expert (reputed audit company) increases in significance. Moreover, verification of the company’s operating plans by an impartial specialist is a pre-condition for raising capital via international equity and debt markets as well as M&A transactions.
Our service includes verification of the mathematical accuracy and sequential correctness of financial forecasts made by the company’s management. We examine the extent to which the accounting policies adopted by the company are consistent with the financial reports and accounts. Diagnosis of the planning process, review of integrity of the financial model, testing of the assumptions and mathematical proofing are also part of the service. The deliverables could be an ISA-based (International Standards on Auditing) Report, Working Capital Report or Due Diligence Report.