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