Copal Amba recently presented a knowledge session on diagnostic analysis for asset managers at the Institute of Chartered Accountants of Sri Lanka’s (CA Sri Lanka) Young Chartered Accountants’ Forum.
The session, aimed at budding chartered accountants, examined the need for a critical review of a company’s corporate governance practices and financials and how global asset managers use diagnostic analysis to support their investment decision-making process.
Ahamed Fawas, Associate Vice President at Copal Amba, led the session, providing an understanding of the challenges that asset managers currently face. He stated that investment managers are finding it increasingly difficult to safeguard their convictions against risks such as potential accounting irregularities and shortfalls in corporate governance.
In this context, the session concluded that diagnostic analysis – which essentially acts as a fine-toothed comb in indicating red flags that could impact either earnings or company valuation – is a significant component in an asset manager’s toolkit.
Copal Amba Sri Lanka Country Head Chanakya Dissanayake said, “Chartered accountants have a valuable role to play in the capital markets in supporting asset managers in due diligence on reported financials. We hope that knowledge sessions like these highlight the evolving and multi-skilled role chartered accountants play in today’s global financial industry.”