Implementing an Effective Risk Ranking Process for Balance Sheet Reconciliations
Description:
Being able to effectively evaluate the reconciliation frequency for balance sheet accounts can involve the review of a variety of factors, both quantitative and qualitative.
During this Peercast, our feature company will share their experiences in developing a structured approach to the risk ranking process for these accounts, including the steps they took in the creation of the appropriate evaluation criteria for their company.
Peercast Poll Results
Poll Title: Balance Sheet Account Reconciliation Frequency and Risk Assessment
Background: This poll looks at what companies are doing regarding the frequency of reconciling low-risk balance sheet accounts, as well as the frequency of reviewing the risk rating for high-risk balance sheet accounts.
Poll Question: What is the standard frequency for reconciling low-risk balance sheet accounts at your company?
| Monthly | 39% | |
| Bi-Monthly | 0% | |
| Quarterly | 32% | |
| Semi-Annually | 11% | |
| Annually | 4% | |
| Other (Please Comment) | 14% |
Poll Question: What is the standard frequency at your company to re-assess the risk ranking for high-risk balance sheet accounts?
| Monthly | 21% | |
| Bi-Monthly | 0% | |
| Quarterly | 11% | |
| Semi-Annually | 0% | |
| Annually | 39% | |
| Bi-Annually or Greater | 4% | |
| No standard frequency | 25% |