Understanding and Auditing Investment and Derivative Activities – Virtual
We are very excited to combine two of our popular classes into one virtual seminar. For this new special offering, we have combined Understanding and Auditing Investment Activities and Understanding and Auditing Derivative Strategies. We have heard from several of our clients that they would like to attend both virtual classes, but it is difficult to commit to four days. Therefore, we have combined the classes into three days but have not lost the critical training concepts of either class.
In this seminar you will gain a basic understanding of investment and derivative terminology, the strategies entered by portfolio managers/investment managers/traders, and the core processes used in the risk management, back-office operations. and accounting.
You will examine front-office, back-office, and middle-office activities, control objectives, red flags, and internal control best practices. In addition, you will learn to differentiate between derivative hedging and speculating activity. which is so critical in the highly volatile market we are in.
The class will pay special attention to identifying the specific risks common to investment and derivative strategies and cover how to minimize those risks with strong compliance and independent risk oversight. Finally, we will learn about critical risks and controls that need to be in place and the audit scope, objectives, and critical audit steps we need to ensure we have included in our audit programs.
COURSE OUTLINE:
Introduction to Investment and Derivatives
- The importance of Auditing Investments and Derivatives
- Understanding the different markets and where we need to focus our time as auditors.
The Investment and Derivative Infrastructure
- Understanding the roles of the front office.
- Reviewing the Risk management and Middle Office responsibilities.
- Discussing the critical Back office, Accounting and Reporting responsibilities.
Understanding Traditional Investments Markets
- Understanding the short-term market:
- Treasuries/Agencies
- Commercial Paper
- Repurchase Agreements
- Reviewing major securities in capital markets:
- Bonds
- Equities
- Alternatives
- Real Estate
Understanding the Derivative Environment
- The importance of reviewing derivatives
- Introduction to derivative risk management
The Forward and Futures Contracts
- Defining the forward contract
- Defining the futures contract
- Working through Forward and Future Strategies
The Option Market
- Fundamentals of options
- Strategic use of options
The Swap Market
- Swap mechanics
- Swap terminology
- Understanding financial swaps examples
- The mechanics of swaptions
Analyzing Investment and Derivative Risks
- Management risk
- Market risk
- Credit/counterparty risk
- Legal risk
- Operational risk
Auditing Investments and Derivatives
- Identifying Audit objectives and Scope Considerations.
- Defining the critical risk and internal controls.
- Discussing and summarizing critical audit steps to include in your audit programs.
- Red flags discovered in your audits and defined approaches.
Course Information:
The course times will be 8:30 am – 4:30 pm Central Time on Day 1 and Day 2. The course end time on on Day 3 will be 12:00 pm Central Time.
For virtual courses, the virtual meeting link and course materials will sent 3-5 days before the course start date.
| Course Duration: | 2.5 day(s) |
| CPE Hours Available: | 20 |
| Field of Study: | Accounting (3), Auditing (8), Specialized Knowledge (9) |
| Program Level: | Intermediate |
| Prerequisites: | General Knowledge of Audit & Investments |
| Advance Preparation: | None |
| Delivery Method: | Group Internet Based |
Speaker
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Barbara DavisonCEO, President and Audit PrincipalBarbara Davison is currently CEO, Audit Principal and Board Chair of the Investment Training and Consulting Institute, Inc. (ITCI), located in Overland Park, Kansas. ITCI provides training and consulting in the areas of Investments, Derivatives, and Risk Management to Management, Operations and Auditors.
Barbara is a distinguished faculty leader for the International Institute of Internal Auditors, where she has served for more than 25 plus years. She is a Certified Internal Auditor, Certified Information System Auditor, Certified Investments and Derivatives Auditor, a Fellow of the Life Management Organization and the author of five books on investment and derivative auditing: “Auditing Investment Activities,” “Auditing Derivatives Strategies,” “Auditing Merger and Acquisitions Strategies,” “Understanding and Auditing Investments and Derivatives,” and “The CIDA Review Book.” Barb has obtained her Series 7 and Series 65 from the National Association of Security Dealers (NASD).
Previously, Barbara was vice president of a financial institution where she directed investment operations for the general account and mutual funds. Her responsibilities also included portfolio management of two mutual funds, which were part of a $7 billion portfolio. Prior to her seven years in investments, Barbara was Manager of Internal Audit for six years, where she was responsible for the management of corporate audit activities, computer security, information systems audits and assisted in new business strategies.
