Solution 3.3-B.xlsx - 10:10:49 Agency ABC Results of Risk...

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10:10:49 Page 1 of 1 Agency ABC Results of Risk Assessment at the Assertion Level CY 2017 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 Risk Response Trial Balance, 12/31/2017 Inherent Risks Control Risks Account Title Impact Control functioning? WP Ref Yes/No WP Ref Based on test? 1,741,848,226.25 High High High Yes Moderate High No reliance High Yes Yes 518,928,082.66 High High High Yes Moderate High No reliance High Yes Yes 2,581,217,521.90 High High High Yes Moderate High No reliance High Yes Yes Office Equipment 2,487,900.99 Low Low Low Yes Low Low High reliance Low Yes No 12,441,520.93 Moderate Low Moderate Yes Low Low High reliance Low Yes No 4,184,368.94 Accuracy Moderate Low Moderate Yes Low Low High reliance Low Yes No Motor Vehicles 21,909,494.81 Moderate Low Moderate Yes Low Low High reliance Low Yes No 6,191,607.74 Accuracy Moderate Low Moderate Yes Low Low High reliance Low Yes No Gain on Foreign Exchange (FO 20,786,934.82 High Low Moderate Yes Moderate Moderate Moderate Yes Yes Loss on Foreign Exchange (FO 33,671,710.88 High High High Yes Moderate High No reliance High Yes Yes 4,733,586,893.74 Total Expenditures 1% 47,335,868.94 Overall Materiality (1% of Total Expenditures) 50% 23,667,934.47 Performance Materiality (50% of Overall Materiality) 25% 5,916,983.62 Testing Threshold for High Value Items Reliance on Controls Inherent Risk of Material Mistatement Control to Mitigate Inherent Risk Overall Risk of Material Mistatement (RMM=IR+CR ) Final Unaudited Balance Conditions relative to inherent risk susceptability Assertion s Affected Likelihoo d Level of Overall Inherent Risk (IR) Control Design adequate? Level of Control Risk (CR) Level of Substantiv e Test Type of Substantive Test Needed Analytical Review Test of Details Cash in Bank - Local Currency, Current Account Out of the 16 bank accounts, eight were closed. There was an instance of tampering of payees and unrecorded reconciling items.
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