Leading UK accounting practice, Menzies, has made Hedgebook software an integral tool to independently verify clients’ financial derivative valuations. In doing so, it has taken quite a different approach to how it has implemented and deployed Hedgebook Audit across its branches.
Leading chartered UK accountancy firm, Menzies LLP.
Creating a consistent audit process for independently verifying financial derivative valuations across the firm.
Audit valuation ‘best practice’ established, with enhanced quality in auditing derivatives.
Since implementing Hedgebook two years ago, UK accounting practice Menzies has made Hedgebook software an integral tool to independently verify clients’ financial derivative valuations. It has established expertise across its six branches as well as setting up a central audit valuation team.
Menzies takes a different approach
Hedgebook’s simple, easy to use, cost-effective way of valuing derivatives – coupled with its comprehensive functionality – was what drove Menzies to choose Hedgebook.
“Hedgebook Audit is simple, easy to use and a cost-effective way of valuing derivatives that can be a complex and costly area of the audit.” Miriam Hanley, Technical Manager – Menzies
Menzies decided to take a slightly different approach to introducing Hedgebook Audit, by establishing a separate audit valuation team. A select number of staff from each office was trained on Hedgebook. Hedgebook’s simple and intuitive software meant minimal training was required, and the team were able to feel confident in using the software straight away.
The 24-hour support provided by Hedgebook has meant the audit valuation team are comfortable in using the software and receive rapid responses on any queries raised.
Hedgebook’s capability and expertise in valuing derivatives outside of the Hedgebook software, has meant Menzies are now able to audit more unusual and complex derivatives.
Important to ask the right questions
At Menzies request, Hedgebook provided a Financial Instrument Planning document. The team can send this document to clients at the planning stage of an audit. They use it to identify, early on, the types of derivatives the client has, and if they have any outstanding at the year-end. This ensures greater efficiency to the audit process.
Ease-of-use and outstanding support
‘When asked what stood out in the engagement to date – it was Hedgebook’s easy-to-use functionality, and the training and support that stood out as being top of mind.
“Hedgebook Audit is an intuitive, cost effective solution which further enhances audit quality and efficiency.” James Hadfield, Audit Partner – Menzies
Hedgebook not only independently verifies financial instrument valuations but also provides the inputs driving these calculations. This has improved teams understanding of how financial instruments work, something that is considered a complex and challenging area in practice.
Menzies is a leading UK firm of accountants, finance and business advisors. It operates across offices in Surrey, Hampshire and London. It is described as the “best performing firm outside of the top 10” by Accountancy Magazine, with over 400 employees and an annual turnover of more than £40m.