TraceRiskRisk SubjectsAccounts Payable / Purchasing / Fixed AssetsAccounts Payable / Purchasing / Fixed Assets

Accounts Payable / Purchasing / Fixed Assets

Use Case for Assessing Risk on Accounts Payable / Purchasing / Fixed Assets

Why assess the risk? Reconciliation of accounts payable to invoices is a common accounting tool to manage financial information on the general ledger and certain other off-balance-sheet accounts. Reconciliations are a review process where process owners, managers or accountants compare information in a financial account to an external document or another accounting report. Fixed asset reconciliations usually involve a review of a bank’s entire list of fixed assets which are reported at original cost and depreciated over their estimated useful life.Errors in reporting fixed assets could lead to a risk of material misstatement of assets on the bank’s balance sheet and erroneous reporting on the Call Report.

Who should assess the risks? Chief Financial Officer, Controller, Accounting Manager

How to assess the risk: Rate the KRIs to determine if a threat would successfully exploit a vulnerability and to justify expenditures to implement countermeasures to protect the bank’s assets or reputation. Use the “Focus Risk Assessment” tool for in-depth analysis of risks and mitigation techniques.