1 / 8

Risk/Controls

Risk/Controls. Risk Definition: Potential threat to the company (what could happen?), likelihood threat will occur (will it happen?), exposure to company if threat occurs (materiality of risk result?)

raven
Download Presentation

Risk/Controls

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Risk/Controls Risk Definition: Potential threat to the company (what could happen?), likelihood threat will occur (will it happen?), exposure to company if threat occurs (materiality of risk result?) Risks need context – the company, what it stands for, what level of risk management is willing to tolerate, industry risks involved, etc.

  2. Risk Assessment - COSO • General • Determine threats to the company • Estimate probability of threat occurring • Estimate exposure from each threat • Specifics • Segregation of Duties Matrix • Financial Statement Matrix • Accounting Cycle Matrix • Access Matrix (IT – discuss next week)

  3. Segregation of Duties Matrix • Examples: • FCRP SOD Matrix.xls • Revenues SOD Matrix.xls

  4. Financial Statement Matrix • Example: • Risk Assessment BS.xls • Risk Assessment IS.xls

  5. Accounting Cycles • Revenue • Expenditures (may separate out Fixed Assets) • Production/Operation • Payroll/Human Resources • Treasury/Finance • Financial Close & Reporting

  6. Accounting Cycles – general risks Discussion: • Revenue • Expenditures (may separate out Fixed Assets) • Production/Operation • Payroll/Human Resources • Treasury/Finance • Financial Close & Reporting

  7. Accounting Cycle Matrix • Example: • Risk Assessment_example.xls • Suggested template

  8. Stacey’s Risks determination method by Cycle • Give / Get Exchange • Major Transactions Types (Activity/Forms) • SOD (who/how): • Approval • Custody • Recording • Monitoring • Control objectives to determine risks: • valid, accurate, timely, complete, compliant, safeguard assets

More Related