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Paper 1 - Audit Trail - Reference to location of data

Ah yes I see, thanks a lot Darshan for pointing this out.

On a separate note, do you also include a separate section/commentary for parameters in the paper 2 summary document?
 
Hi Benoy,

No. Summary for P2 addresses to a Fellow and the requirements are different. Check the CMP notes and past papers, you will see contents of what is required in a Summary Report.
 
Benoy Soman said:
Hi guys, thanks for your replies, taken onboard!
It's frustrating because some of the past paper solutions like Sept 2018 only have a brief line on Parameters, whilst the September 2017 solution goes into a lot of detail. And then some papers don't have a parameters section in their audit trail. So just trying to weigh up between time and detail.
Click to expand...

Yes, I find the inconsistency across the model solutions to be really confusing.
 
Hello Viki,

The above is already a solution of an audit trail and you can infer that no cell references have been made in the Parameters section.
 
Thank you. So in conclusion, cell reference would only be useful for the METHODOLOGY section and GRAPHS.
 
Thanks for posting guys, I appreciate it.
One question to add to this thread:
In the audit trail (and/or Summary Report), is it necessary to include the actual figure/information given when listing the parameters used in the 'Parameters' section?
e.g.
The following parameters are used in the model and are set out in this worksheet....
'An interest rate of 5% per annum' instead of 'The annual interest rate to be used'.. etc
I ask because I believe there are also inconsistencies in this regard when looking at the past paper solutions.
Can someone please clarify which approach is better to use?
Thanks in advance,
Paradise
 
Hello guys,

My above reply was for Viki when she said that detailed signposting are for methodology and charting explanation.

As for the most recent query, I would not be explicitly state the value of the parameters, just defining them as follows:

"
This sheet sets out all the parameters used in the spreadsheet. It includes the following:

- The standard amount of the mortgage for a first-time buyer type of mortgage.

- The Annual Percentage Rate (APR) for a first-time buyer type of mortgage.

- The term of a first-buyer type of mortgage.

- The uplift factor which is used to increase the repayment amount by a fixed percentage.

- The frequency of the mortgage payment.

- The typical amount of mortgage given to customers who are moving to a new house.

- The typical amount of mortgage given to other customers.

- The term of all other mortgages besides the first-time buyer type.

It is to be noted that where named ranges have been defined these are detailed in red italic adjacent to the relevant cells and pale shading (orange) indicates input cells that can be changed by the user."

You may also wish to know that Parameters section is not a requirement in Summary for Paper 2.
 
Hi guys,

I had emailed one of the tutors previously about this and they had mentioned that there is no need for actual values for parameters in the audit trail.
The reader of the audit trail should mainly be able to understand what parameters are being used and where they come from, in case they wanted to update the model and parameters themselves.
It does come down to personal preference and it doesn't help that the solutions have an inconsistent approach.
 
Dar_Shan0209 said:
Hello guys,

My above reply was for Viki when she said that detailed signposting are for methodology and charting explanation.

As for the most recent query, I would not be explicitly state the value of the parameters, just defining them as follows:

"
This sheet sets out all the parameters used in the spreadsheet. It includes the following:

- The standard amount of the mortgage for a first-time buyer type of mortgage.

- The Annual Percentage Rate (APR) for a first-time buyer type of mortgage.

- The term of a first-buyer type of mortgage.

- The uplift factor which is used to increase the repayment amount by a fixed percentage.

- The frequency of the mortgage payment.

- The typical amount of mortgage given to customers who are moving to a new house.

- The typical amount of mortgage given to other customers.

- The term of all other mortgages besides the first-time buyer type.

It is to be noted that where named ranges have been defined these are detailed in red italic adjacent to the relevant cells and pale shading (orange) indicates input cells that can be changed by the user."

You may also wish to know that Parameters section is not a requirement in Summary for Paper 2.
Click to expand...
Hi Darshan,

Just following up on this point, would you also note where the parameters come from? E.g. the APR is provided by ... or term of a first-time buyer as given by...
 
Hello, thanks guys for such great info. I'd say that the parameters are based on data and we quote data sources, so it would not be necessary to state the source of parameters. Would you agree?
 
Hi guys,

In the Data section, you would have already mentioned the source(s) of key information. Parameters only refer to parameters that are used in the spreadsheet.

I hope this answers your question.

Best of luck for Wednesday and Thursday.
 
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