The International Leader

in Audit and Information Security Training

Auditing Asset ManagementUnderstanding the key internal audit issues

that exist within asset management

4 day course 24 - 27 January 2010

Understanding the key issues relating to risk, control and the

internal audit of asset management

• 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 programmes to meet the demands

of this complex audit area

Abu Dhabi, UAECourse Director

Dennis Cox

Earn 30 CPE credits

SAVEUP TO 50%

WITH IN HOUSETRAINING Details inside

Register by

27 December 2009 to secure your place

Should you miss this date please call:

+44 (0)20 7779 8454to check availability

Enquire or register today

Web: mistieurope.com/courses Email: training@mistieurope.com Tel: +44 (0)20 7779 8454

Dennis was with HSBC Bank for 10 years

where he held senior management roles

including - Director, Risk Management at

HSBC Operational Risk Consultancy and

also 7 years as Senior Audit Manager at

HSBC in London.

Prior to that he was Global Risk Director

at Prudential Portfolio Managers

Limited, with responsibility for credit,

legal and operational risk for the global

business. Previously he spent 12 years in

practice with Arthur Young and BDO

Binder Hamlyn.

Among a range of external interests Dennis

is a senior Council member of the ICAEW,

Chairman of the Financial Planning

Committee of the London Society and a

member of the Money Laundering

Committee; together with being the

Chairman of the Risk Forum for the

Securities and Investments Institute.

Dennis also specialises in providing

practical solutions to his clients’ needs.

These include meeting the challenges of

the Basel Accord in respect of credit risk

and operational risk, as well as other

business and regulatory requirements.

Dennis Cox delivers MIS Training

Institute’s “Risk Based Auditing for Banks”,

“Bank Internal Audit School” and also

“Auditing the Credit Department”. Recent

in-house audit training assignments

include a programme for a major South

African bank’s 150 internal auditors on

Basel II implementation.

Dennis is the author of the banking

industry standard, Banking and Finance:

Accounts, Audit and Practise (Butterworths,

1993); joint author of The Mathematics of

Banking & Finance (Wiley Financial, March

2006) and senior editor and author of

several chapters of The Frontiers of Risk

Management (Euromoney Institutional

Investors, May 2007).

Course focus and features

The asset management industry has been fast growing and increasing in its complexity and variety.

As at end September 2008 the European fund management industry alone had some $4,000 bn of

assets under management. The implementation of Basel II and the recent credit crisis have put the

importance of control and management within the industry into an increasingly strong focus.

Internal audit functions are required to address the key risks and controls operating throughout an

institution, including those applying within the asset management industry. This course looks

systematically at the application of control to the risks applying within asset management 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 key 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 the participants will develop key

approaches that can be applied directly to their institutions.

Learning objectives

This course is designed to provide he course participants with an understanding as to the key internal

audit issues that exist within asset management. The programme will concentrate n 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 delegate will have been built a series of audit programmes suitable to

enable them to audit an asset management operation and will have provided attendees with

increased awareness of the key issues and controls that are applied in practice.

In-House Training - Save up to 50% when you run this course in-house

In-house tailored training will enable you and your colleagues to make significant savings as we charge per day and not per participant so the cost

remains the same regardless of how many people attend. We can offer any of our public courses or tailor them to your requirements. Training is available

in all areas of Internal Audit, IT Audit, and IT Security.

If you have six or more colleagues who would be interested in one of our courses and you would like to make significant savings, contact us now:

Email Guy Cooper at gcooper@mistieurope.com or call +44 (0) 20 7779 8454

You will have complete control of the training content and decide when it is run. We guarantee that we will be able to cater for all your business needs.

Course Director

Dennis Cox

Auditing Asset Management

Understanding the key internal audit issues

that exist within asset management4 day course24 - 27 January 2010

Abu Dhabi, UAE

© MIS Training 2009

Who Should AttendThis course specifically designed for employees who are required to conduct internal audit

assignments with asset management .

MethodologyCombined classroom lecturing and practical workshop style learning environment delivered

more impacting results of knowledge retention and application. This will be supplemented by

case studies, exercises and role playing where appropriate.

Prerequisite Some knowledge of internal audit techniques and

banking terminology would be an advantage.

Learning Level Intermediate

Fee GBP £2,395

CPEs 30

Day One

Session 1: The general asset managementcontrol environment • Structure and roles in an asset

management firm • Types of funds and ho 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 • Introduction to process modelling • Introduction to key risk indicators and the

balanced scorecard • Introduction to transaction investigation

procedures • What can go wrong in asset management • Introduction to control and risk self

assessment • Loss data and operational risk

Case study: What information is of greatestimportance to the internal auditor? Whatshould be requested in advance? Case study: Develop a pre-audit planningdocument suitable for an assetmanagement audit

Session 2: Acquiring a client • Controls over new clients • Risks associated with client take on

procedures • What information should be maintained to

demonstrate 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 programmesuitable to audit the acquisition process andalso for on-going review of existingrelationships

Day Two

Session 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 programmesuitable for the audit of quoted equityinvestments Case study: Develop an audit programmesuitable for the audit securities lending

Day Three

Session 4: Quoted fixediIncome 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 ratings • The valuation of government securities • Risk and controls within sovereign bond

processing Case study: Develop an audit programmesuitable for the audit of quoted fixedincome investments

Session 5: The risk management ofalternative 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

• 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 withderivatives, including documentation,valuation and reporting issues Case study: Develop an audit programmesuitable for the audit of alternativeinvestments

Day Four

Session 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 programmesuitable for the audit of money marketsfunds

Session 7: The risks in asset location &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 programmesuitable for the audit of asset allocation andportfolio management

Session 8: The risks in outsourcing and theselection and management of third parties • The selection process • The service level agreement and other

contracting issues • He testing phase • Key performance indicators • Risks and controls

Case study: Develop a audit programmesuitable for the audit of outsourcedrelationships

Session 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 sensitivityanalysis in asset management

Case study: Discuss how to audit stresstesting and scenario analysis Case study: Develop an audit programmesuitable for the audit of counterparty creditanalysisCase study: Develop an audit programmesuitable for the audit of the reporting ofasset management

Enquire or register today

Web: mistieurope.com/courses Email: training@mistieurope.com Tel: +44 (0)20 7779 8454

The International Leader

in Audit and Information Security Training

Auditing AssetManagementUnderstanding the key internal audit issues

that exist within asset management

Abu Dhabi, UAE24 - 27 January 2010

Can’t make this date? Contact us to find out when we are next running the event

Why attend? • MIS Training Institute is the global leader in audit and

infosecurity training, with over 30 years experience and having

trained over 200,000 delegates

• Instructors/speakers are the most reputable in the industry

• Group sizes are restricted to ensure optimum contact time with

the facilitator

• Courses are constantly reviewed and revamped to meet the

latest legislative and market challenges

• Gain CPE points towards your professional certification

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RegistrationAuditing Asset Management

24 - 27 January 2010, Abu Dhabi, UAE (MT040106)

GBP £2,395

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