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What is a risk score?

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Summary

A risk score is an aggregate score derived from multiple control point results, and are displayed on entries and transactions. 

By combining the metrics associated with specific control points, stronger statements emerge about the story behind each each entry and transaction, and high risk scores indicate that an entry is likely worth sampling. Most entries in a ledger will trigger one control point or another, but if a single entry receives a high score from numerous control points, it is almost certainly worthy of further scrutiny.

MindBridge offers assertion-based risk scores by default, but your App Admins can create custom risk scores for you and your team based on your firm's methodology. These risk scores can even further customized as needed within the engagement settings, for truly tailored analysis results.

Review the assertion risk scores available out-of-the-box with MindBridge below:


Default risk scores in GL analyses

General ledger analyses contain the MindBridge score, which is a collection of all control point scores for a given entry or transaction. This analysis also includes the following 15 assertion-based risk scores:

Asset assertion risk scores

  • Completeness score
  • Existence score
  • Presentation score
  • Rights and obligations score
  • Valuation score

Liabilities and equity assertion risk scores

  • Completeness score
  • Existence score
  • Presentation score
  • Rights and obligations score
  • Valuation score

Profit and loss assertion risk scores

  • Accuracy score
  • Classification score
  • Completeness score
  • Cut-off score
  • Occurrence score


Default risk scores in AP and AR analyses

AP and AR analyses contain the MindBridge score by default, which is an aggregate of all control point scores for a given entry or transaction and 4 assertion-based scores relating to the following assertions:

Each of these scores is an aggregate of control point results that subject matter experts found to be applicable to the assertion. Visit the articles for each of the assertions (linked above) to see details about which control points are included in each of these risk groups and why.


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