Auditing Asset Management Internal Audit - MIS Training

The Global Leader InAudit and Information Security TrainingAuditingAssetManagementKey issues relating to risk controland internal audit of assetmanagementInternal Audit4 DAY COURSE:20 - 23 February 2012LondonCourse DirectorJohn PorterJohn Porter, BA ACA is a charteredaccountant, banker and financial servicesconsultant specialising in internal audit,with more than 20 years’ experience inthese fields.‘A very good andinformative course.Some great examplesfrom the real world’Genesis Investment Management■ Understanding the key issues relating to risk, controland the internal audit of asset management■ Understand the key risks within the asset managementindustry and the nature of the controls that are appliedin practice■ Develop practical internal audit approaches to themanagement of the business and for each asset classthat can be applied directly to your institution■ Design a series of internal audit programmes to meetthe demands of this complex audit areaSave up to50%Email: Omar Khazen, Head of In-HouseTraining at training@mistieurope.comor call: +44 (0) 20 7779 8456Register Online at:www.mistieurope.com/trainingQuoting Code:IA120206-W

Course focus and featuresAuditingAssetManagementKey issues relating to risk controland internal audit of asset managementCourse DirectorJohn PorterJohn Porter, BA ACA is a chartered accountant, banker and financialservices consultant specialising in internal audit, with more than 20 years’experience in these fields. John has held various management positionswithin the internal audit departments of the global financial institutions ABNAMRO, HSBC, American Express and Bank of Bermuda, having gainedhis Chartered Accountancy qualification (UK ICAEW) with Ernst & Young.His areas of expertise include:The audit of a wide variety of financial products and derivatives,including Equities, Bonds/Fixed Income, FX, Corporate Finance, PrivateEquity/Venture Capital, Asset Management, Insurance, Trust and CreditCards. (John’s Asset Management experience includes audit andaccount management responsibilities for the London-based InvestmentManagement Division of HSBC Asset Management, and thefundamental re-engineering of the conduct of this Division in liaison withmanagement and regulators.)The audit of support functions for retail banking, investment banking andcredit card operations, in particular Risk Management,Operations/Settlement, Finance, Treasury, Asset & Liability Management,Tax, Human Resources, Legal and Compliance.Underpinning the conduct of product and support function audits,supporting the audit process itself, he is an expert in many aspects ofinternal audit methodology, including the following:• The risk-based planning process (from set up of the risk-rankedAudit Universe to monitoring the execution of the Annual AuditPlan against budget)• Audit report and issue tracking methodology, the escalationprocess, and influencing the “tone at the top”• Evaluation of the effectiveness of the audit process• Effective auditing techniques and methodologies• Effective report writing and other communication skills• Knowledge management methodology• Roll out of the Institute of Internal Auditors Professional PracticesFramework• Roll out of a Code of Ethics.John is an Associate of the Institute of Chartered Accountants inEngland & Wales (ACA) and holds a BA Honours degree in Historyfrom Bristol University. Based in Amsterdam, he speaks fluentEnglish and is proficient in Dutch.The asset management industry has been fast growing andincreasing in its complexity and variety. As at end September2008 the European fund management industry alone hadsome $4,000 bn of assets under management. Theimplementation of Basel II and the recent credit crisis haveput the importance of control and management within theindustry into an increasingly strong focus.Internal audit functions are required to address the key risks andcontrols operating throughout an institution, including those applyingwithin the asset management industry. This course lookssystematically at the application of control to the risks applying withinasset management and considers the approach that internal auditorsshould adopt when conducting such an assignment.The objectives of this course are to enable attendees toappreciate the key issues that arise in practice when undertakingthe internal audit of asset management; to ensure that the internalauditors focus on the areas of greatest risk and that they developpractical solutions to the challenges that they face. Using a seriesof practical case studies the participants will develop keyapproaches that can be applied directly to their institutions.Learning objectivesThis course is designed to provide the course participantswith an understanding as to the key internal audit issues thatexist within asset management. The programme willconcentrate on the main asset types; equity (listed andunlisted), fixed income and property, whilst referring to otheravailable asset types. By the end of the course delegates willhave built a series of audit programmes suitable to enablethem to audit an asset management operation and will haveprovided attendees with increased awareness of the keyissues and controls that are applied in practice.Who Should AttendThis courses specifically designed for employees who are required toconduct internal audit assignments within asset management.MethodologyCombined classroom lecturing and practical workshop stylelearning environment will deliver impacting results of knowledgeretention and application. This will be supplemented by casestudies, exercises and role playing where appropriate.PrerequisiteSome knowledge of internal audit techniques and bankingterminology would be an advantage.Advanced Preparation: NoneTraining Type: Group-LiveLearning Level: IntermediatePrice: GBP £2,695CPEs: 30Telephone:+44 (0)20 7779 8456Email:training@mistieurope.com

Day One:Monday 20th FebruarySession 1:The general asset management controlenvironment• Structure and roles in an assetmanagement firm• Types of funds and how this changes risk• General introduction to investment asset typesand associated risk• Introduction to asset allocation and how thismitigates risk• Introduction to benchmarks and performanceevaluation• Identification of controls• Identification of risks and risk register• Introduction to process modelling• Introduction to key risk indicators and thebalanced scorecard• Introduction to transaction investigationprocedures• What can go wrong in asset management• Introduction to control and risk self assessment• Loss data and operational riskCase study: What information is of greatestimportance to the internal auditor? What should berequested in advance?Case study: Develop a pre-audit planning documentsuitable for an asset management auditSession 2:Acquiring a client• Controls over new clients• Risks associated with client take on procedures• What information should be maintained todemonstrate 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 dilemmaCase study: Develop an audit programme suitable toaudit the acquisition process and also for on-goingreview of existing relationshipsDay Two:Tuesday 21st FebruarySession 1: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 lendingCase study: Develop an audit programme suitablefor the audit of quoted equity investmentsCase study: Develop an audit programme suitablefor the audit securities lendingDay Three:Wednesday 22nd FebruarySession 1:Quoted fixed income investment• The risk associated with acquiring and disposingof fixed income securities• The use of ratings with pricing of fixed incomesecurities• Risk and controls within the corporate fixedincome processing• Risks associated with government securities• How to use sovereign risk ratings• The valuation of government securities• Risk and controls within sovereign bondprocessingCase study: Develop an audit programme suitablefor the audit of quoted fixed income investmentsSession 2:The risk management of alternativeinvestments• 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• Private equity / angel finance– What is private equity?– Risks and controls• The use of derivatives in asset management –OTC vs ETD– Types of derivatives used in asset management– Future– Options• Risks and controls associated with derivatives,including documentation, valuation and reportingissuesCase study: Develop an audit programme suitablefor the audit of alternative investmentsDay Four:Thursday 23rd FebruarySession 1:Money market funds• Role in asset management• Asset and liability management• Portfolio Liquidity• Asset diversification• Key risks and controlsCase study: Develop an audit programme suitablefor the audit of money markets fundsSession 2:The risks in asset location & portfoliomanagement• 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 controlsCase study: Develop an audit programme suitablefor the audit of asset allocation and portfoliomanagementSession 3:The risks in outsourcing and theselection and management of third parties• 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 controlsCase study: Develop an audit programme suitablefor the audit of asset allocation and portfoliomanagementSession 4: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 assetmanagement• Stress testing and sensitivity analysis– How to use stress testing and sensitivityanalysis in asset managementCase study: Discuss how to audit stress testing andscenario analysisCase study: Develop an audit programme suitablefor the audit of counterparty credit analysisCase study: Develop an audit programme suitablefor the audit of the reporting of asset managementRegister Online at:www.mistieurope.com/trainingQuoting Code:IA120206-W

The Global Leader InAudit and Information Security TrainingAuditingAssetManagementKey issues relating to risk controland internal audit of asset managementRegister Online at: www.mistieurope.com/trainingIMPORTANT INFORMATION - YOUR REGISTRATION CODE:IA120206-WPlease ensure you enter your bookingcode when registering and you willbe entered into our monthly prize drawto win £50 of Amazon vouchersamount:£50.00claim code:1234-4567890-2345Learn how to redeem your Amazon.co.uk gift certificateLONDON20 - 23 FEBRUARY 2012PRICE GBP £2,695Price includes tuition, course folder with allcourse notes, lunch and refreshments and aprestigious certificate. Delegates are responsiblefor their own accommodation. You can requestan invoice or pay online. Please note, paymentmust be received prior to course start.Travelling To London From Abroad?MIS Training has been accredited by the BAC,making your trip to London easier which shouldmake your visa application process much smoother.We can help with your visa.Email: training@mistieurope.com7 Reasons to Choose MIS Training1 423We are the global leader in Audit, Risk, Fraud andSecurity Training, with over 30 years experience andhaving trained over 200,000 delegates. Our clientsinclude; European Central Bank, National AuditOffice, Ministry of Defence, European Court ofAuditors, Euroclear and the World BankOur course directors have at least 15 years relevantexperience for companies such as Shell, ABNAMRO, HSBC, ICI, Zeneca, American Express andMerrill Lynch and Co. Many are published authorsand sit on boards of prestigious associations suchas the IIA and ISACAYour course instructor will welcome any postcourse follow up. The training course doesn’t stopas soon as you leave567Each course is reviewed and revamped regularly toensure it addresses the latest legislative andmarket changesWe are registered with NASBA. You will be able togain CPE points towards your accreditationWe have been accredited by the BritishAccreditation Council (BAC). The BAC is recognizedthe world over and represents the clearest mark ofeducational quality. BAC is recognized by the UKBorder AgencyOur public courses take place in luxury 4-5 starhotels in capital cities across EMEA. We include acomplimentary 3 course lunch every day as well asrefreshments throughout so you can enjoy yourtraining in complete comfortGroup Booking Discount**2 delegates -5% discount3 delegates -10% discount4 delegates -12% discount5 delegates -15% discount**Available for delegates from one organisation attending the same courseData Protection:Use of your information: The information you provide on this form will be used byEuromoney Institutional Investor PLC and its group companies (“we” or “us”) in relationto your registration for this event. We may also monitor your use of our website(s),including information you post and actions you take, to improve our services to youand track compliance with our terms of use. Except to the extent you indicate yourobjection below, we may also use your data (including data obtained from monitoring)(a) to keep you informed of our products and services; (b) occasionally to allowcompanies outside our group to contact you with details of their products/services. Asan international group, we may transfer your data on a global basis for the purposesindicated above, including to countries which may not provide the same level ofprotection to personal data as within the European Union. By submitting your details,you will be indicating your consent to the use of your data as identified above. Furtherinformation on our use of your personal data is set out in our privacy policy, which isavailable at www.mistieurope.com or can be provided to you separately upon request.Marketing choices: If you object to contact as identified above by telephone ❑, fax ❑,or email ❑, or post ❑, please tick the relevant box. If you do not want us to share yourinformation with other companies ❑ please tick this box.Cancellation Policy:Please ensure you have read this carefully before submitting yourregistration] MIS Training operates a 20 working day cancellation policy.Any cancellations received after 20 days or any delegate that does notattend will be subject to full payment. You may transfer to anothercourse/conference for a transfer fee of 25% of the initial booking fee plusthe difference between the value of the course/conference you aretransferred to. This will be invoiced or refunded. Please note that thereplacement course/conference must take place within 6 months of theinitial application. Alternatively you may send another colleague to the initialbooked course/conference without incurring any additional fees. A fullrefund less an administration fee of £100 will be given for cancellationrequests received up to 20 working days before the event. Cancellationsmust be made in writing and reach the MIS office before the 20 workingdays deadline.Accommodation:All training venues will be confirmed 3-4 weeks prior to the course startdate. MIS Training Institute has negotiated special accommodation rates in4 star hotels in central London (Zone 1) for UK courses.VAT:All delegates attending are liable to pay VAT.Overseas delegates can claim a VAT refund underthe European Union (EU) 8th and 13th Directives onall eligible business expenses such as course fees,hotel accommodation, meals, car hireetc., provided you are not registered for VAT in theUK. For more information please visitwww.mistieurope.com/VAT oremail training@mistieurope.com.Printed on paper from a sustainablesource, using vegetable oil based inks