Financial Model Review Template and 3 statement Model (Word DOCX)

Large-scale financial models are time-consuming. Financial models are an integral part of the business decision-making process, enabling organizations to assess the financial implications of commercial decisions with confidence.

The construction of a robust financial model is the cornerstone of accurate, informed, and timely commercial decision making and forecasting. Company boards, CFO's, and financiers want to ensure they are dealing with fair and accurate financial information.

By reviewing the detail of the assumptions and formula, and undertaking a high-level review of outputs, we are able to provide assurance on the flow of data from initial assumptions through to output schedules. In addition, we analyze key sensitivities to provide further assurance on the integrity of the model and to identify any potential funding issues or covenant breaches.

This letter presents the template to report findings of a financial model review in the context of your clients' requirements, which may include a summary of errors identified during the review with recommendations on ways to improve the structure of the model.

It will enable you to communicate the findings of the financial model for your business, project, or investment reviewed or audited to provide comfort that the right information to make an informed business decision is available to key stakeholders.

In addition to the financial model review template, a general three statement financial model developed in accordance with best practice is attached.

The Word document includes detailed appendices covering major input assumptions, accounting reviews, and taxation reviews. These sections are designed to ensure comprehensive coverage of all critical aspects of the financial model. The appendices allow for the identification and analysis of base case inputs, accounting treatments, and tax implications, providing a thorough examination of the model's robustness. This meticulous approach ensures that all potential issues are identified and addressed, giving stakeholders confidence in the financial model's accuracy and reliability.