The risk factors | Business risk | Control risk | High risk | Low risk | ||||
n | % | n | % | n | % | n | % | |
1) The accounts receivable subsidiary ledger is periodically reconciled with the receivable control account. | 52 | 31.7 | 112 | 68.3 | 25 | 15.2 | 139 | 84.8 |
2) There is an established and effective policy for the authorization of transactions. | 15 | 9.1 | 149 | 90.9 | 43 | 26.2 | 121 | 73.8 |
3) Duties are properly separated among personnel involved in financial accounting. | 20 | 12.2 | 144 | 87.8 | 50 | 30.5 | 114 | 69.5 |
4) The bank statement balance is periodically reconciled with the bank balance account in the entity. | 93 | 56.7 | 71 | 43.3 | 29 | 17.7 | 135 | 82.3 |
5) Discrepancies between the physical count of inventory and the accounting records are investigated and reconciled. | 78 | 47.6 | 86 | 52.4 | 7 | 4.3 | 157 | 95.7 |
6) Duties are properly separated among personnel involved in financial accounting. | 53 | 32.3 | 111 | 67.7 | 33 | 20.1 | 131 | 79.9 |
7) The internal audit staff are not experienced and lack training in accounting. | 15 | 9.1 | 149 | 90.9 | 112 | 68.3 | 52 | 31.7 |
8) There is an effective electronic data processing system (EDP). | 3 | 1.8 | 160 | 98.2 | 23 | 14 | 141 | 86 |
9) There is proper segregation of duties between who records payable accounts in the accounting records and who makes payments. | 25 | 15.2 | 139 | 84.8 | 31 | 18.9 | 133 | 81.1 |
10) Inventory is physically safeguarded from unauthorized access and physical deterioration. | 54 | 32.9 | 110 | 67.1 | 51 | 31.1 | 113 | 68.9 |