Through an independent audit process, many accounting firms have provided tacit approval and certification of our models and methodologies for pricing options, exotic derivatives and bonds. The following accounting firms have used some or all of the pricing models contained in the FinTools® Software Suite – OPTIONS XL (Black-Scholes, Whaley and Binomial), EXOTICS XL (non-standard contracts and Monte Carlo Simulation), UTILITY XL (volatility, normality and time series analysis) and Option Tracker:
|PriceWaterhouseCoopers||Buck Consultants||Moss Adams, LLP|
|Deloitte Consulting, LLP||Burr, Pilger & Mayer||O’Conor Write Wyman Inc.|
|Ernst & Young||Citrin, Cooperman & Company||Smart & Associates, LLP|
|KPMG LLP||Crowe Chizek||Stovall, Grandey & Whatley, LLP|
|Grant Thornton LLP||Friedman, Alpren & Green, LLP||Urbach & Avraham CPAS, LLP|
|Mayer Hoffman McCann P.C.||Goldberg Jacobs & Company, LLP||Weinick, Sanders, Leventhal & Co., LLP|
|American Express Tax & Bus. Svs||Hutton, Nelson & McDonald, LLP||Wiss & Company|
|AJ. Robbins, PC||Krauss Whiting, LLC|
|Avail Consulting, LLC||L.L. Bradford & Company|
|Brown Armstrong||Levine, Hughes & Mithuen, Inc.|
|Brown, Graham & Company||Mintz Rosenfeld & Company, LLC|
Montgomery Investment Technology, Inc. would like to emphasize that special attention and precision must be applied when generating the inputs for the pricing models. Invalid inputs indeed will result in erroneous valuation results. A function of the independent accounting audit process is to verify the assumptions that are being applied to a particular pricing model or methodology.
Montgomery Investment Technology provided OPTIONS XL Premium Series to the Financial Accounting Standards Board in November 1992, and subsequently assisted FASB in evaluating various employee stock option “Fair Value” measurement techniques. In October 1995, SFAS 123 was released recommending the Black-Scholes, Binomial or other relevant pricing models. FASB is familiar with many of the models contained in our library of financial functions. In 2003 we provided FASB with the latest version of our software which contains models for pricing non-standard ESO contacts and more precise methods for pricing standard ESOs.
Many of the valuation techniques in our software are recommended by various independent accreditation and certification organizations including the American Institute of Certified Public Accountants (AICPA), Association for Investment Management and Research (AIMR) and Global Association of Risk Professionals (GARP).
Our staff is available to discuss the models and assumptions in the FinTools® Software Suite with the accounting auditors of our clients. Our goal is to provide transparency, independence and fairness in the valuation process.
George L. Montgomery, CFA, FRM
Montgomery Investment Technology, Inc.