Audit & Accounting

Auditable valuations for OTC financial instruments

It is often difficult for firms to obtain universally consistent, transparent valuations across large, diverse derivatives portfolios. This causes problems for audit and accounting teams, who need to understand the prices and process used for completing mark-to-market. CMA NAVigate™, CMA's independent valuations platform for OTC financial instruments, resolves this problem by providing transparent, independent valuations via a centralised, auditable environment where firms can formalise and document related aspects of their valuation process.

Hedge funds, alternative investment firms, banks and asset managers

Using CMA NAVigate™ enables the audit and accounting groups at hedge funds, alternative investment firms, banks and asset managers to:

• access transparent, auditable trade details, valuations results and underlying pricing inputs
• audit overrides by viewing alternative price levels and sources used by the firm for valuing certain trades
• increase investor confidence by providing external auditing and accounting firms with access to view selected valuation results, pricing inputs
• increase the firm's ability to achieve FASB and IASB level 2 status for CDS instruments using CMA's data liquidity metrics.

Fund administrators

CMA NAVigate™'s centrally accessible valuation environment enables fund administrators to coordinate with fund accounting groups while empowering clients to satisfy audit requirements.

• Centralise and streamline internal interaction between fund accounting and valuation groups to service client accounts more seamlessly.
• Help clients better satisfy audit requirements by demonstrating the formalisation and independence of process that is enabled by CMA NAVigate™.

Audit & consultancy & government agencies

CMA NAVigate™ enables firms to respond with confidence to increased scrutiny from investors, regulators, accounting boards and industry groups. Auditors, consultants and government agencies are able to simplify regulatory oversight by requiring clients to use the platform to manage their valuation process.

• Firms using this transparent, consensus-based approach for the valuation of OTC financial instruments can better demonstrate the transparency and integrity of their valuation process.
• Auditors can easily be granted access to the web-based environment to assess valuation results and inputs, as well as pricing overrides.
• CMA NAVigate™ can also be employed directly by audit firms, consultancies and government agencies to proactively carry out independent assessment of client valuations.