29 April 2026
Audit‑Ready Derivative Valuations: A TRMS Checklist
Audit teams need fair‑value measures across financial instruments, evidence of inputs, and sensitivity analysis. Hedgebook TRMS ticks all the boxes.
At year‑end, independence, transparency and accuracy are non‑negotiable. Audit teams need fair‑value measures across financial instruments (FX forwards, options and interest rate swaps), evidence of inputs, and sensitivity analysis aligned to accounting requirements.
A Treasury Risk Management Solution (TRMS) – such as Hedgebook – standardises that workflow and reduces friction with clients, especially those running multi‑currency programmes (e.g. GBP/USD and EUR/USD). This TRMS checklist covers the bases in what an audit firm should look for.
Scope and instruments
The most prevalent financial instruments used by corporates are FX forwards, structured FX options and interest rate swaps. Inputs should be traceable to recognised market data; models and methodologies should be documented. Hedgebook’s Valuations Tool follows this pattern and produces concise outputs suitable for workpapers and client communication.
The evidence pack auditors expect
A robust pack typically includes:
- IFRS 13 fair value — including CVA/DVA where applicable — with clear market inputs.
- IFRS 7 sensitivity disclosures to demonstrate the impact of interest rate and exchange rate movements.
Why independence matters
Independence reduces debate over methodology and removes reliance on counterparties, who are clearly not independent. Auditors all over the world (including 75% of the Top 30 Audit Firms in the UK) use Hedgebook to validate client derivative valuations, pointing to practical fit and confidence at year‑end.
How you might use Hedgebook TRMS for year-end reporting
- Align the calendar: agree a cut‑off for instrument capture and market inputs to avoid late changes.
- Use the valuations tool for interim checks: monthly mark to markets reveal anomalies early.
- Keep sensitivity packs consistent: the same rates and horizons across entities.
- Document exceptions: unusual structures (e.g., barrier options) need explicit notes.
The aim is to make reporting that could take days available to you in minutes. And do it in a way that meets the audit standards for independent third-party valuations. Hedgebook makes it incredibly easy – and affordable – as any number of auditors around the world will attest.
Let us show you how easy using Hedgebook can tick all the boxes in the TRMS checklist your audit team – a quick 20 minute online demo will cover what you need to know. Or – if you haven’t already – take a look at our Auditors page.
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