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?

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  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?

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  Monthly 21%
  Bi-Monthly 0%
  Quarterly 11%
  Semi-Annually 0%
  Annually 39%
  Bi-Annually or Greater 4%
  No standard frequency 25%