Risk

Inaccuracies
Reputation Risk

Internal/External Reports
Causes
Action
Mathematical Errors
Setting specific policies and procedures
Misapplication of GAAP
designed to mitigate financial reporting
Intentional Misstatements
risk.
(Fraud)
Reliance on Excel Spreadsheet
Assigning different people to different
and Manual Processes
parts of a process segregation of duties
to avoid mathematical errors.
Separation of approval and payment to
reduce the risk of unauthorized payments.
Improving the IT system by replacing
outdated system and limiting the access to
IT system to authorized personnel.
Comparing two sets of records and
analyzing the difference to identify
whether it is posted properly.

Information Risks

Incomplete records due to

misplaced documents, such as
invoices

Compare current operating results to

budgets, forecasts or prior period results
to examine deviations and uncover errors
in the records.
Documents should have a duplicate of the
original invoice for back-up in cases of
misplacement.
Disclose more detailed analyses of the
quantitative data for the purpose of
developing information to be used in
decision making.
Integrate information risk on financial
reporting with other risk disclosures.
Review and improve risk management of
the company; most risks are the same as
the prior period.

Compliance Risks

Not meeting the standards in

reporting