Get a second set of eyes on CECL
Discover whether there are any flaws in your CECL model and methodology with Wipfli’s CECL validation service.
CECL models are complex and introduce significant risk into your financial institution. With a CECL model validation, you can verify that:
- Your methodology is being applied appropriately
- Model inputs are coming from the appropriate sources
- The calculations and resulting outputs are correct
If there are any issues identified during the validation, you can then take action and make the necessary adjustments. Regulatory guidance suggests that key models — such as most CECL models — should be validated as part of managing model risk, so don’t wait until your year-end audit highlights any errors. With a validation, you can help ensure your model is operating appropriately and can be accurately reported on in your next call report and financial statement.
Our CECL specialists bring a deep understanding of not only the CECL accounting standard but also the different methodologies and models that financial institutions are using. Our solution isn’t one size fits all. We have performed CECL validations for financial institutions of varying sizes, with models of varying complexity, and we understand the depth of testing needed, what areas to look at and how to meet the guidance issues by regulators.
Featured Thought Leader
Nick G. Ansley, CPA
Nick Ansley is a partner who brings more than 15 years of invaluable experience to financial institution clients. He has particular expertise with external audit and accounting and control issues that specifically impact financial institutions. Nick also has extensive commercial loan review experience. He has worked with large banks to develop internal control narratives and testing programs to assist them with FDICIA compliance requirements. Bringing additional value to his clients, Nick also assists with various agreed-upon procedure engagements and internal control reviews.
Brett D. Schwantes, CPA
Brett Schwantes has over 25 years of experience working closely with financial institutions and is the leader of the Audit and Accounting Committee for the financial institutions practice of Wipfli LLP and a member of Wipfli’s Accounting Standards Advisory Group. He advises clients on various unique and complex issues such as derivatives, fair value measurements of financial instruments, and the new CECL accounting standard. Brett also consults with clients on the impact of new accounting standards and how best to implement them to avoid negative consequences whenever possible.