AI Analysis Results
Consolidation & External Reporting — Financial Reporting & Close
The Consolidation & External Reporting process exhibits controls that are partially in place or inconsistently operated. Several gaps in design effectiveness and operating consistency were identified that, if left unaddressed, could elevate residual risk beyond the organization's tolerance. Prompt remediation is recommended.
- Intercompany balances are reconciled and eliminated each period.... has been partially implemented
- Exception reporting is generated and reviewed timely
- Management review is performed on a regular cadence
- Access recertification cadence does not meet policy requirements
- Monitoring controls are not formally documented or tested
- Evidence of review lacks timestamp and reviewer identity
- 1Automate exception detection and route alerts to control owners within 24 hours
- 2Develop a remediation tracker with defined SLAs and escalation paths
- 3Implement a workflow tool that captures reviewer identity and timestamp for all approvals
Control-Level Breakdown (1)
The control is partially implemented but operates inconsistently. Intercompany balances are reconciled and eliminated each period. Gaps in execution or evidence retention reduce assurance over this area.
Redesign the control to address inconsistencies. Specifically: intercompany balances are reconciled and eliminated each period. Assign a control owner and establish a testing cadence.