Working with Auditors
Valtech’s Valuation team recently worked with the target company’s auditors to complete a valuation review assessment of the portfolio. The investments include listed equity, bond and private fund investments. Our team worked diligently to assess the compliance and reasonableness of the investment methodology and results.
In the valuation review, the primary objective is to assist the firm’s auditors in identifying any material issue inherited in client assessment, particularly in the fields of valuation and compliance. We reviewed the source data and documents to verify the investment calculations provided by the company. We further re-performed the calculation by cross-checking the traded price of listed equity and bond, and bench-marking the investment return with market peers’ share price movement and located any performance of investment value which is significantly different from the provided value.
Win-win Situation
From auditors’ perspective, they acquitted sufficient accounting knowledge, yet valuation results provided by the company are sometimes out of their expertise. Valtech can give a helping hand in assisting auditor in analyzing valuation result and providing review opinion in completing audit procedure. This creates a win-win situation where the client can provide reasonable assessment by themself and auditor can rely on an objective external opinion without hampering own workload. We are looking forward to cooperating with more auditors in valuation review.