Auditing Derivative Activity through Data Analysis – Virtual
We are very excited to offer this new class on Derivative Analytics. Barb Davison (ITCI) has teamed up with Elizabeth Scott from the State Board of Administration of Florida to deliver this very informative and critical session on using data analysis in your derivative audits.
Derivatives are very difficult to audit as many of you know. When utilizing an appropriate system to review all derivative activity over a defined scope period; you just enhanced your ability to identify anomalies that could be red flags in need of further review.
We know many of you are are skilled in data analytics in general and have most likely used them in investments before. Therefore, we are focusing this class on derivatives analysis only. To facilitate our class objectives, we will assume all attendees have a cursory knowledge of derivatives. This will allow us to use simulated derivative trades to demonstrate data anomalies that can be highlighted in trade activity.
We also will encourage attendees to share any successful derivative analytics they have utilized that can provide more information to the class.
COURSE OUTLINE:
- Discuss the importance of using data analysis in your derivative audits.
- Determine the type of derivative data that can be used and how to obtain the independent data from multiple systems and from independent sources.
- Identify data fields that are more conducive to understand the trade activity.
- Recognize the specific derivative risk that can be isolated for further review.
- Discuss which data runs are best to be used only in derivative audits and which analytics can be utilized in continuous auditing programs.
- Once we discuss the above topics, we will demonstrate types of derivative analytics that can be completed on both trade data and holdings. We will use real trade data in Excel and Tableau to demonstrate the data results. While there are other very good data systems that can be used, these are the specific systems available to the class facilitators.
- We will review a recent case study highlighting derivative fraud and discuss how derivative analytics could have assisted in identifying the red flags.
- While we will only use derivative activity, we will send you home with a summary listing of data routines that you can perform in different asset classes to enhance your investment audits moving forward.
Course Information:
The course time will be 12:00 pm – 4:00 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: | 4 Hours |
| CPE Hours Available: | 4 CPE |
| Field of Study: | Auditing (2), Specialized Knowledge (2) |
| Program Level: | Intermediate |
| Prerequisites: | General Knowledge of Audit & Investments |
| Advance Preparation: | None required |
| Delivery Method: | Group-Internet Based |
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Investment Training and Consulting Institute, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credits. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. |
| Attendance Requirements: | In order to be awarded the full CPE hours, attendees must complete at least 3 attendance monitoring mechanisms (codewords, polls, etc) per CPE hour. |
| Policy Information: | For more information regarding how to register for a course, refund, program cancellation, complaint policies and other frequently asked questions, please visit our Q&A page or contact our office at 785-783-8201. |
Hourly Schedule
Day 1 - Agenda
- 12:00pm - 4:00pm
- Day 1 - Auditing Derivative Activity through Data Analysis
- Day 1 of the course will start at 12:00pm and end at 4:00pm
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.
