Shadow model - Revision history

Doug: Layout.

2024-10-13T15:52:14Z

Layout.

← Older revision		Revision as of 15:52, 13 October 2024
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	Shadow modelling is about gaining assurance that a model is functioning correctly and appears to be error free.		Shadow modelling is about gaining assurance that a model is functioning correctly and appears to be error free.


	We build a shadow model that aims to reproduce the logic of the model under review. If our shadow model produces a different result from the original model, either there is an error in one or both of the models, or something important has not been properly understood.		We build a shadow model that aims to reproduce the logic of the model under review. If our shadow model produces a different result from the original model, either there is an error in one or both of the models, or something important has not been properly understood.
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	[[Category:Accounting,_tax_and_regulation]]		[[Category:Accounting,_tax_and_regulation]]
	[[Category:~~The_business_context~~]]		[[Category:Compliance_and_audit]]
	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
			[[Category:Financial_products_and_markets]]
			[[Category:Identify_and_assess_risks]]
	[[Category:Investment]]		[[Category:Investment]]
	[[Category:Long_term_funding]]		[[Category:Long_term_funding]]
	~~[[Category:Compliance_and_audit]]~~
	~~[[Category:Identify_and_assess_risks]]~~
	[[Category:Manage_risks]]		[[Category:Manage_risks]]
			[[Category:Risk_reporting]]
	[[Category:Risk_frameworks]]		[[Category:Risk_frameworks]]
	[[Category:~~Risk_reporting]]~~		[[Category:The_business_context]]
	~~[[Category:Financial_products_and_markets~~]]

imported>Doug Williamson: Expand definition.

2021-06-16T23:10:20Z

Expand definition.

← Older revision		Revision as of 23:10, 16 June 2021
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	''Financial modelling - audit and assurance.''		''Financial modelling - audit and assurance - spreadsheet risk.''

	Shadow models are a tool to obtain understanding and assurance about the correct functioning of a financial model under review.		Shadow models are a tool to obtain understanding and assurance about the correct functioning of a financial model under review.

	~~The shadow~~ model ~~reproduces the logic of the model under review~~.		Shadow modelling is about gaining assurance that a model is functioning correctly and appears to be error free.

	The expectation is that, taking the same inputs as the model under review, ~~the~~ shadow model will produce the same outputs, using the same logic.		We build a shadow model that aims to reproduce the logic of the model under review. If our shadow model produces a different result from the original model, either there is an error in one or both of the models, or something important has not been properly understood.

			The expectation is that, taking the same inputs as the model under review, our shadow model will produce the same outputs, using the same logic.

	Any differences are investigated, corrected for, or explained.		Any differences are investigated, corrected for, or explained.

imported>Doug Williamson at 23:07, 16 June 2021

2021-06-16T23:07:40Z

← Older revision		Revision as of 23:07, 16 June 2021
Line 1:		Line 1:
	''Financial modelling - audit and assurance.''		''Financial modelling - audit and assurance.''

	Shadow models are a tool to obtain understanding and assurance about a financial model under review.		Shadow models are a tool to obtain understanding and assurance about the correct functioning of a financial model under review.

	The shadow model reproduces the logic of the model under review.		The shadow model reproduces the logic of the model under review.

imported>Doug Williamson: Add links.

2021-04-08T14:21:57Z

Add links.

← Older revision		Revision as of 14:21, 8 April 2021
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	* [[Assurance]]		* [[Assurance]]
	* [[Audit]]		* [[Audit]]
			* [[Ceteris paribus]]
			* [[FAST Modelling Standard]]
	* [[Financial model]]		* [[Financial model]]
	* [[Model]]		* [[Model]]
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	* [[Sensitivity analysis]]		* [[Sensitivity analysis]]
	* [[Simulation]]		* [[Simulation]]
			* [[Spreadsheet risk]]
	* [[Stochastic]]		* [[Stochastic]]

imported>Doug Williamson: Create page. Source: Letter from Jerome Brice, Mazars, July 2009 https://www.slideshare.net/bricej/model-audit-shadow-modelling

2020-02-19T15:42:49Z

Create page. Source: Letter from Jerome Brice, Mazars, July 2009 https://www.slideshare.net/bricej/model-audit-shadow-modelling

New page

''Financial modelling - audit and assurance.''

Shadow models are a tool to obtain understanding and assurance about a financial model under review.

The shadow model reproduces the logic of the model under review.

The expectation is that, taking the same inputs as the model under review, the shadow model will produce the same outputs, using the same logic.

Any differences are investigated, corrected for, or explained.

Shadow modelling of this kind is a very robust way to gain a high degree of assurance and understanding about a financial model.

== See also ==
* [[Assurance]]
* [[Audit]]
* [[Financial model]]
* [[Model]]
* [[Risk management]]
* [[Rounding]]
* [[Sensitivity analysis]]
* [[Simulation]]
* [[Stochastic]]

[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]