Financial Model Audit
Definition
An independent review of the company's financial model by the investor's team or advisors, assessing the structural integrity of the model, the documentation of assumptions, the internal consistency of projections, and the sensitivity of outputs to key assumptions. A financial model audit is standard practice in Series A and above due diligence.
Common Misapplication
The most common misapplication is treating the financial model audit as a formatting review rather than as a substantive assessment of the model's assumptions. Investors who conduct model audits independently rebuild the projections from stated assumptions to verify that the model's outputs are supported by its inputs.
FFI Standard Reference
This term is defined and applied in Book 5, Section 5.4: The Financial Due Diligence Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Financial Model Audit. https://ffistandard.org/glossary/financial-model-audit/. 2026.