Model Audit & Quality Control
As financial models drive critical investment, strategy, and transaction decisions, even minor errors or inconsistencies can have significant consequences. A thorough audit and quality control review ensures your models are reliable, defensible, and robust.
Synpact Consulting offers Model Audit & Quality Control services to institutional clients, advisory firms, and corporates. We examine model logic, mathematics, assumptions, consistency, and presentation to deliver reassurance, identify gaps, and enforce trust in your analytical tools.
Why Choose Synpact for Model Audit & Quality Control
- Independent & Objective Review: Fresh pair of expert eyes uncover hidden flaws, logical breaks, or mis‑linkages.
- Deep Technical Expertise: Analysts with strong accounting, valuation, and modeling backgrounds conduct in-depth checks.
- Comprehensive Audit Scope: From input assumptions to output sensitivities, every element is validated.
- Structured Framework & Checklists: We use standard audit frameworks, error‑traps, and control protocols to ensure thoroughness.
- Documentation & Traceability: All findings, corrections, and recommendations are documented and traceable.
- Timely Feedback & Turnaround: Rapid audit cycles to maintain momentum on valuation, pitch, or transaction deadlines.
- Governance & Stakeholder Assurance: Audit reports support internal/external review, investor comfort, and due diligence depth.
Our Services in Model Audit & Quality Control
- Model Logic & Linkage Check – Ensure that all statement linkages (Income → Balance Sheet → Cash Flow) hold and dynamic updates carry through.
- Assumption Sensitivity Review – Test assumption ranges, check for inconsistencies, and evaluate sensitivity to key drivers.
- Error Traps & Exception Flags – Embed or test for error‑traps (e.g. division by zero, negative balances, balance sheet mismatches, circular references).
- Ratio & Sanity Checks – Validate key financial ratios (liquidity, leverage, margins, growth) against norms and benchmark metrics.
- Stress Testing & Scenario Validation – Subject the model to extreme cases or adverse conditions and validate the model’s behavior.
- Version Control & Change Log Audit – Review change logs, version history, and assumption amendments for consistency and auditability.
- Presentation & Output Review – Check that outputs (tables, charts, summaries) align with underlying model, and narrative consistency.
- Audit Report & Corrective Recommendations – Provide a summary report of issues, suggested fixes, risk rankings, and final sign‑off.
Process & Workflow
- Kickoff & Scope Definition – Agree audit depth, model scope (full/partial), timeline, and review boundaries.
- Model Intake & Documentation Review – Receive model files, assumption decks, version histories, and walkthroughs.
- Line‑by‑Line Audit – Inspect each sheet, formula logic, linkages, and dependency chains.
- Testing & Sensitivity Checks – Run stress cases, scenario toggles, and validate assumption sensitivities.
- Issue Logging & Prioritization – Document findings, classify by severity, and propose corrective actions.
- Client Review & Iteration – Walk client through findings, refine and resolve discrepancies.
- Deliver Audit Report & Verified Model – Deliver final clean model, audit report, change log, and assurance summary.
Industries & Use Cases
Industries / Sectors Covered:
- Technology & SaaS
- Healthcare / Life Sciences
- Clean Energy / Renewables
- Consumer Goods / Retail
- Industrials / Infrastructure
- Fintech & Financial Services
Use Cases:
- Pre‑deal or due diligence validation of valuation models
- Pitch / investment deck model review before publication
- Internal governance & board / audit committee assurance
- Audit / forensic review for third‑party validation
- Investor comfort for funding rounds or capital raises
- Quality control on buy‑side / sell‑side models hosted by advisory firms
Frequently Asked Questions (FAQs)
Q: What depth of model audit do you perform?
A: We can do full end‑to‑end audits across all modules, or partial audits focusing on key risks or segments.
Q: How long does an audit typically take?
A: Depending on model complexity and scope, 1–5 business days is common.
Q: Do you correct the errors directly?
A: Yes, we can either correct directly or provide a “clean copy” with annotated fixes, based on client preference.
Q: What deliverables are provided?
A: Audited model, audit report (issues + fixes + risk rating), change log, and summary assurance memo.
Q: Are assumptions reviewed or challenged?
A: Yes — we evaluate assumption consistency, industry benchmarks, and internal logic coherence.
Call to Action
Before relying on valuation outcomes, ensure your model stands the scrutiny of a rigorous audit.
Synpact Consulting provides model auditing and quality assurance to validate logic, strengthen confidence, and mitigate risk.
Contact: [email protected] to request a model audit, assurance review, or sample audit report.