Auditing Derivative Activity through Data Analysis

Course Details:
Auditing Derivative Activity Through Data Analysis

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.

Instructors: Barbara Davison and Elizabeth Scott
Class Duration: 4 hours - 12:00 -4:00 Central Time
CPE: 4 hours
Mode of Instruction: Virtual