Infrastructure model audit

Robust

Instead of solely relying on the typical ‘tick and bash’ approach, we instead shadow the model under test and fully interrogate any discrepancies discovered. The first advantage of this approach is that it provides a robust audit trail – if the analyst cannot explain variances, the audit trail is not complete. The ‘tick and bash’ approach alone provides no such assurance. The second advantage is that an initial replication can be performed early and quickly to provide high level assurance, this can be used to rectify material model issues prior to bid submission.

Focussed

As well as addressing shortcomings in the approach to model logic, our experience and discussions with funders have revealed that the most frequent occurrence of model audit “error” is related to inadequate review of the model to underlying documentation. We address these concerns in two ways. Firstly, ensuring that the scope of document review is clearly identified at the outset, that the funder is aware of the latest documents we have reviewed and that there is a plan in place to ensure final documents are reviewed to the model prior to financial close/model sign off. Secondly, we ensure all our audits are undertaken by experienced staff with wide experience of undertaking the reviewing of projects already in operation; they bring this experience to bear in ensuring that documentation is both correctly reflected in the financial model, whilst assessing the potential impacts of compliance with documentation on the day-to-day management of the operational project.

Informed

The team has provided model audit opinions on a wide range of both project and corporate finance transactions. Reviews have been undertaken in the defence, schools, health, accommodation, waste, telecoms, emergency services and transport sectors and we have undertaken audits on behalf of banks, monoline insurers, shareholders and public sector regulators and procurers. This experience ensures that the commercial issues related to your transaction are understood, and their application within the model can be properly tested. As you would expect of an international accountancy firm, we are able to offer independent and informed opinions on compliance with local GAAP and tax legislation. However, Mazars also leads the way in understanding the development of International Financial Reporting Standards; one of our partners being a member of the panel that produced IFRIC 12 – Service Concession arrangements.