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Let's Audit Investments
It's a PE World
Investment Accounting
Let's Audit Investments Advanced
Let's mix it up
100
Three of five balance sheet assertions related to investments.
What is Valuation, Existence, Completeness, Rights and Disclosures.
100
The short form of this is DLOM
What is Discount for Lack of Marketability
100
If a no cost derivative resets at the end of the fiscal year, the unrealized gain (loss) typically equals this.
What is its FMV.
100
Two types of Estimation Uncertainties related to investments.
What are LEU and HEU
100
Oh no! The audit differences are posted on this schedule.
What is a SAD?
200
Two of four income statement assertion related to investments.
What are measurement, occurrence, completeness and disclosure?
200
Three of several audit considerations related to private placements / private investments.
What is reviewing the valuation methodology, confirming that the assumptions are reasonable and consistent, seek assistance from EY Specialist (TAS), test inputs to the valuation model (verify comps/multiples), review pro-forma financial information and check the accuracy of the financial model.
200
The number of days after yearend a large accelerated filer is required to issue form 10K.
What are 60 days?
200
Two of several factors that can be used to stratify a bond.
What is maturity, credit rating, duration, discount/premium, yield/spread, type of bond.
200
EY group that I have to reach to if I run into those pesky derivatives.
What is DVC?
300
A investment confirmation and holdings report are tied to this important document.
What is a Position Reconciliation
300
Three of four major valuation techniques used to value private investments by PE/VC
What are DCF, LBO, Public Company Comparable and Transaction Comparable analysis.
300
Under investment company accounting, a fund's investment in another fund is measured using this.
What is practical expedience?
300
Typical sample size of HEU investments.
What is 10%.
300
Smart EY folks that I have to reach out to if I get stuck with those complex debt like MBS, etc.
What is EY Structured Finance?
400
Two of the three attributes of an option that we should agree to the confirmation.
What are units of options, strike price and expiration.
400
Oh no! I have to perform this analysis because total equity is less than total investment.
What is Waterfall Analysis?
400
Under investment company accounting, a unitized fund need to disclose its financial highlights for each initial one of these.
What are share classes?
400
Factors to consider when relying on a pricing service provider's pricing feed.
What is their qualification, reputation and objectivity.
400
This is DVC's method of analyzing differences in derivative prices.
What is Spread DV01 difference.
500
You can think of this as a hypothetical "quantity" for a derivative.
What is a notional amount.
500
Daily Double.
What is EV - Debt + Cash = Market Cap. This is how I get from Enterprise Value to Market Cap if the company has Debt and Cash.
500
The financing cost (in the year incurred) related to a derivative is accounted as this.
What is realized loss.
500
Timing of testing investments that have high/moderate CRA.
At or near year-end.
500
Valuation test performed to test reasonableness of bond price when we can't find independent pricing.
What is Back Testing?