Emphasis of matter and Financial model: Difference between pages

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In certain circumstances financial statements may contain information about a matter which has been appropriately presented or disclosed, but which the auditors deem to be fundamental to the users’ understanding of the financial statements as a whole.<br />
''Spreadsheets and models.''
 
A simplified representation of a financial situation, using selected assumptions.
 
Financial models are widely used in practice for valuation, and to support financial decisions and risk management.
 
Models are also an important tool in finance coaching and financial education.
 
 
In simple terms, a model:
*Presents a financial calculation (or calculations)
*In a way that enables the user to understand it and to challenge it, especially about its assumptions.


The auditors will draw attention to this matter in their auditors' report of their opinion.<br />
This part of the auditors' opinion is known as an ‘emphasis of matter’.




== See also ==
== See also ==
*[[Auditors’ report]]
* [[Ceteris paribus]]
* [[Coaching]]
* [[Deterministic]]
* [[Financial maths]]
* [[Financial modelling]]
* [[Input]]
* [[Model]]
* [[Risk management]]
* [[Rounding]]
* [[Sensitivity analysis]]
* [[Shadow model]]
* [[Simulation]]
* [[Spreadsheet]]
* [[Spreadsheet risk]]
* [[Stochastic]]
* [[Tab]]
* [[Workbook]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Technology]]

Revision as of 13:54, 11 August 2021

Spreadsheets and models.

A simplified representation of a financial situation, using selected assumptions.

Financial models are widely used in practice for valuation, and to support financial decisions and risk management.

Models are also an important tool in finance coaching and financial education.


In simple terms, a model:

  • Presents a financial calculation (or calculations)
  • In a way that enables the user to understand it and to challenge it, especially about its assumptions.


See also