Audit assertion risk scoring allows administrators to configure how assertion-level risk is evaluated across financial statement accounts within general ledger analyses.
Administrators can configure:
- account/assertion pairings
- assertion-level scoring workflows
- risk ranges
- scoring thresholds
- control point behavior used in assertion risk assessment
These settings help organizations align assertion-level risk scoring with their audit methodology and risk assessment workflows.
Configure assertion risk settings
Assertion risk scoring is configured through the applicable library settings.
Depending on the analysis configuration, administrators can:
- enable or disable assertion risk scoring
- configure assertion/account relationships
- define assertion-specific scoring behavior
- configure risk ranges and thresholds
- manage enabled risk scores
Configure assertion/account pairings
Assertion risk scoring evaluates risk separately for each account/assertion pair.
For example:
- Revenue | Occurrence
- Revenue | Completeness
- Inventory | Valuation
Administrators can configure which control points apply to specific account/assertion pair to better align scoring with audit methodology and financial statement presentation.
This helps ensure that users review assertion-level risk within the proper audit context.
Configure risk ranges and demerit points
Administrators can configure the risk score ranges and demerit point values used to categorize assertion risk scores.
Risk ranges determine how scores are classified as Low, Medium, or High. Demerit point values determine how much low-, medium-, and high-risk items contribute to the accumulated score.
How assertion risk scoring is used
Configured assertion risk scores are used throughout the Audit assertion risk dashboard to support:
- assertion-level risk assessment
- transaction-level investigation
- audit planning workflows
- risk review and documentation
- explainable risk analysis
Users can review assertion-level results and drill into the underlying transaction activity contributing to elevated risk scores.