FINANCIAL MODELLING SERVICES
Model Review
Independent reviews of financial models, examining technical integrity, modelling practice and assumptions within an agreed scope.
Know what you can rely on
Financial models play an important role in investment, financing and business decisions. Before relying on their outputs, it is worth understanding whether the calculations work as intended, the assumptions are reasonable and the results are consistent with the underlying information.
At EXEMPLUM®, we review financial models with a critical, independent perspective. We examine their structure, calculations and modelling practices, challenge assumptions within the agreed scope and document our findings with practical recommendations.
An independent review cannot eliminate every uncertainty or guarantee that a model is correct. It can, however, help identify weaknesses, make limitations more visible and give decision-makers a better-informed basis for judging how far they can rely on the model.
What we review
Best Practice Review
We examine the model’s structure, consistency, transparency and adherence to appropriate financial modelling practices. The aim is to identify weaknesses that make a model difficult to understand, maintain or review.
Technical Review
We examine formulas, calculation logic, model integrity and the behaviour of the model under different assumptions and scenarios. Findings are documented with practical recommendations for correction.
Assumptions Review
Where agreed, we examine the consistency and plausibility of model assumptions against the supporting information provided. The extent of this review depends on the available evidence and the agreed scope.
Each review is scoped individually and may cover one or several of these areas. Our reviews report findings based on the procedures performed; they do not constitute a statutory audit or formal assurance opinion.
Our review approach
An independent model review starts with an understanding of the model’s purpose, its intended users and the agreed scope of the engagement.
We combine appropriate automated checks with manual examination of the model’s structure, calculations and behaviour. Findings are assessed, documented and discussed with the client.
Our approach is proportionate to the agreed scope and the information available. We assess models against relevant modelling practices and their intended purpose, rather than assuming that every model must follow the FAST Standard.
Risk-based
We focus our procedures on the model’s purpose, material calculations and areas of potential weakness.
Independent
We examine the model critically and challenge its workings rather than relying solely on the developer’s explanations.
Evidence-based
We document our findings and the checks performed, distinguishing identified issues from matters requiring further clarification.
Actionable
We provide practical recommendations and discuss the findings so that identified issues can be addressed.
How we work
01
Scope
We agree the purpose of the review, the areas to be examined, the information required and the expected deliverables.
02
Examine
We examine the model using appropriate analytical tools and manual procedures, considering its structure, calculations and behaviour within the agreed scope.
03
Report
We document our findings, explain their significance and provide practical recommendations for addressing identified issues.
04
Follow up
We discuss the findings with the client and, where agreed, examine the corrections made in response to our review.
An independent perspective
Reviewing a financial model requires a different mindset from building one. Our task is to question the logic, challenge the structure and examine how the model behaves — including in situations its original developer may not have anticipated.
Having worked with financial models from the perspectives of both developers and users, we understand where weaknesses can arise and why they matter. We document what we find, explain its significance and distinguish identified issues from areas that require further investigation.
Let’s take a closer look.
Whether you need an independent review before a transaction, financing decision or internal approval, we’d be pleased to discuss your model, the questions you need answered and an appropriate scope of review.
