San Francisco Professional Events List

Auditing Asset Management - OAP380

Oct 30, 2017 - 08:30 AM - Nov 01, 03:00 PM
MIS Training Institute Holdings, Inc
MicroTek Computer Lab SF
655, Montgomery St

San Francisco,
ZIP: 94111

Internal audit functions are required to address the key risks and controls operating throughout an institution, including those that apply to asset management. This course looks systematically at how to best implement controls within asset management to drive down risk, and considers the approach that internal auditors should adopt when conducting such an assignment.

The objectives of this course are to enable attendees to appreciate the primary issues that arise in practice when undertaking the internal audit of asset management, to ensure that the internal auditors focus on the areas of greatest risk and that they develop practical solutions to the challenges that they face. Using a series of practical case studies, attendees will develop key approaches that can be applied directly to their institutions. 

This three-day training course is designed to provide course participants with an understanding of the key internal audit issues that exist within asset management. The program will concentrate on the main asset types: equity (listed and unlisted), fixed income and property, whilst referring to other available asset types. By the end of the course attendees will have been built a series of audit programs that enable them to audit an asset management operation and will have an increased awareness of the primary issues and controls applied in practice. This course combines classroom lecturing and practical workshop-style learning. Case studies, exercises and role playing will be used where appropriate.


  • Understand the key issues relating to risk, control and the internal audit of asset management and differing asset classes

  • Understand the key risks within the asset management industry and the nature of the controls that are applied in practice

  • Develop practical internal audit approaches to the management of the business and for each asset class that can be applied directly to your institution

  • Design a series of internal audit programs to meet the demands of this complex audit area

A practical training program to enable delegates to learn and understand the risks and management techniques used within asset management and how to audit them including:

  • Front, middle and back office roles

  • Controls over equity and fixed income investment

  • How to audit performance measures

  • The risk associated with portfolio management

  • How to audit counterparty credit risk

  • The risk associated with other non-traditional asset classes

Prerequisites: None
Learning Level: Intermediate      
Advance Preparation: None
Field: Auditing        
Delivery Method: Group-Live

Who Should Attend

This course specifically designed for employees who are required to conduct internal audit assignments within asset management.

CPEs: 24
LEVEL: Intermediate
Tuition : $2,495


What you will learn:​

1. The General Asset Management Control Environment
• structure and roles in an asset management firm
• governance in asset management
• types of funds and how this changes risk
• general introduction to investment asset types and associated risk
• introduction to asset allocation and how this mitigates risk
• introduction to benchmarks and performance evaluation
• identification of controls
• identification of risks and risk register
• what can go wrong in asset management?
Case study: What information is of greatest importance to the internal auditor? What should be requested in advanced?
Case study: Develop a pre-audit planning document suitable for an asset management audit 

2. Acquiring a Client
• controls over new clients
• risks associated with client take on procedures
• what information should be maintained to demonstrate Know Your Customer (KYC)?
• how can you keep this up to date?
• how can you audit the client agreement?
• how should client suitability be documented?
• the moral vs. actual risk dilemma
Case study: Develop an audit programme suitable to audit the acquisition process and also for on-going review of existing relationships

3. Quoted Equity Investment
• the risk associated with acquiring securities
• the risks associated with managing securities
• risk associated with corporate actions 
• pricing of quoted equity investment
• risks associated with international equity markets
• what is tracking error?
• controls over equity valuation techniques
• financial statement analysis
• ratio analysis
• the selection of the benchmark
• the role of middle and back office
• securities lending
Case Study: Develop an audit programme suitable for the audit of quoted equity investments
Case Study: Develop an audit programme suitable for the audit securities lending

4. Quoted Fixed Income Investment
• the risk associated with acquiring and disposing of fixed income securities
• the use of ratings with pricing of fixed income securities
• risk and controls within the corporate fixed income processing
• risks associated with Government securities
• how to use sovereign risk ratings
• the valuation of government securities
• risk and controls within sovereign bond processing 
Case study Develop an audit programme suitable for the audit of quoted fixed income investments

5. The Risk Management of Alternative Investments
• what are alternative investments?
- structured products risks and returns
• hedge funds
- what is a hedge fund?
- risks and controls
• venture capital 
- valuation issues
- risk and control
• property
- synthetic property
- acquiring property
- risk and control
• private equity/ angel finance
- what is private equity?
- risks and controls
Case study: Develop an audit programme suitable for the audit of alternative investments

6. Money Market Funds
• role in asset management
• asset and liability management
• portfolio Liquidity
• asset diversification
• key risks and controls
Case Study: Develop an audit programme suitable for the audit of money markets funds

7. The Risks in Asset Allocation & Portfolio Management
• asset allocation and risk management
• use of historical data
• client suitability
• risks and controls
• tactical asset allocation
• risks associated with core and satellite
• risk and controls
Case Study: Develop an audit programme suitable for the audit of asset allocation and portfolio management

8. The Risks in Outsourcing and the Selection and Management of Third Parties
• the selection process
• the service level agreement and other contracting issues
• the testing phase
• key performance indicators
• risks and controls
Case study: Develop an audit programme suitable for the audit of outsourced relationships

9. Other Matters
• reporting to senior management
- escalation based reporting
- risks and controls
• reporting performance
- the client report
- standards of reporting
- risks and controls
• risk issues in pensions fund Management
- the role of the pension trustee
- asset & liability management in a pension fund
- risk and controls
• credit risk
- counterparty credit risk
- use of limits
- central counterparties
- risks and controls
• scenario modelling
- how to use scenario modelling in asset management
• stress testing and sensitivity analysis
- how to use stress testing and sensitivity analysis in asset management
Case study: Discuss how to audit stress testing and scenario analysis
Case Study: Develop an audit programme suitable for the audit of counterparty credit analysis
Case Study: Develop an audit programme suitable for the audit of the reporting of asset management

Event Categories
Keywords: fun, business , class , design , Fun , functions, implement, industry , institution, lear


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