What is Expected Loss (EL) Auditing?

It is an independent review of a financial institution�s methodology for calculating Expected Credit Losses under IFRS 9, ensuring the provisions set aside for bad loans are accurate.

Who needs EL Auditing in Dubai?

Primarily banks, financial institutions, leasing companies, and large corporations that hold significant receivables and must comply with IFRS 9.

How does it relate to IFRS 9?

IFRS 9 introduced a forward-looking �expected credit loss� model for financial assets, replacing the �incurred loss� model. An EL audit validates compliance with this specific standard.

What data is required for an EL Audit?

We require historical default data, macroeconomic forecasts, portfolio aging reports, and the specific algorithms used in your Expected Credit Loss model.

How frequently should EL models be audited?

Given the volatility of macroeconomic factors, financial institutions should have their ECL models independently audited on an annual basis at minimum.

Does EL Auditing apply to non-banking corporations?

Yes, any corporation with significant trade receivables, lease receivables, or intercompany loans must calculate and audit expected credit losses under IFRS 9.

el auditing dubai � Fast Company Setup UAE

Expected Loss (EL)
Auditing Services

Fast Company Setup LLC FZ provides specialized Expected Loss (EL) auditing services for financial institutions and corporations. We rigorously test your impairment models, assess data quality, and validate your methodologies against IFRS 9 requirements.

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The Strategic Advantage

Why Choose Our
EL Auditing Experts?

IFRS 9 Expertise

Specialized validation of your Expected Credit Loss (ECL) models.

Verified Benefit

Data Integrity

Rigorous testing of underlying portfolio data and assumptions.

Verified Benefit

Regulatory Alignment

Ensuring compliance with Central Bank of the UAE regulations.

Verified Benefit

Model Validation

Independent mathematical checking of your probability of default models.

Verified Benefit

Risk Advisory

Actionable insights to improve credit risk management frameworks.

Verified Benefit

Customized Approach

Tailored audit plans based on your specific portfolio complexity.

Verified Benefit

Corporate Assurance

Rigorous Risk & Provisioning Validation

Our EL auditing services focus on the accurate measurement and reporting of expected credit losses. We help financial institutions manage credit risk effectively.

Macroeconomic Variable Testing

Ensuring full alignment with regulatory expectations.

Probability of Default (PD) Validation

Driving continuous improvement and efficiency.

Operational Excellence

Professional EL Auditing
Methodology

Validating EL models requires deep statistical and accounting expertise. Our auditors follow a structured validation framework to ensure your provisions are accurately stated.

Model Governance Review

Data Quality & Integrity Checks

Methodology & Assumption Validation

Recalculation of ECL Provisions

Scenario Analysis Testing

Regulatory Reporting & Sign-off

Cloud Ecosystem

Data Extraction & Analytics

We seamlessly interface with your core banking or enterprise systems to extract historical default data and perform our independent EL calculations and stress tests.

Core Banking Systems

SAS Analytics

Moody's Analytics

Python/R Models

Oracle Financials

Custom ERPs

Central Bank & IFRS 9 Mandates

Financial institutions in the UAE are strictly regulated by the Central Bank and must adhere to IFRS 9 impairment rules. Inaccurate EL calculations can lead to massive regulatory fines and capital adequacy issues.

Integrated Financial Support