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What is a Risk Score?

Article author
Jonathon Plowman-Samson
  • Updated

Summary

A risk score is an aggregate score that combines multiple control point results together. Risk scores are applied to an entry or transaction, in the same way that individual control point scores are.

By combining multiple control point results together, stronger statements emerge about an entry or transaction. By chance, most entries in a ledger will trigger one control point or another. When a single entry triggers numerous rules-based control points and is detected as anomalous by multiple machine learning control points though, this entry is almost certainly worthy of notice.

High risk scores indicate that several related control points have triggered on the same entry, which means a higher chance that an entry is worth sampling or a higher chance that an audit assertion was violated.


Risk scores in the GL

General ledger analyses contain the MindBridge Score, which is a collection of all control point scores for a given entry and transaction. This analysis also includes the following 15 assertion risk scores which are tailored to the account type:

Assets risk scores

  • Existence Score
  • Rights and Obligations Score
  • Completeness Score
  • Valuation Score
  • Presentation Score

Liabilities and equity risk scores

  • Existence Score
  • Rights and Obligations Score
  • Completeness Score
  • Valuation Score
  • Presentation Score

Profit and loss risk scores

  • Occurrence Score
  • Completeness Score
  • Accuracy Score
  • Cut-off Score
  • Classification and Presentation Score


Risk scores in AP and AR subledgers

AP and AR subledger analyses contain the MindBridge Score, which is a collection of all control point scores for a given entry. These subledger analyses also contain four targeted risk assertion scores, relating to the following assertions:

Each of these scores is a collection of control point results that our in-house subject matter experts found to be applicable to the assertion. Check out the articles for each of the assertions (linked above) to see details about which control points are included in each of these ensembles and why.


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