Student and Campus Life conducted a risk assessment based on inherent risk and control effectiveness to determine risk likelihood.
For a copy, please see: SCL Risk Assessment 3-31-24
Inherent risk is the susceptibility of a financial process to misstatement, without consideration of any compensating internal controls.
Scale | Definition | Factor |
High | Involves complex calculations, significant judgment, use of estimates, potential future uncertainty , assets susceptible to misappropriation, or management incentive to misstate financial reporting. | 10 |
Moderate | Involves relatively simple calculations, minimal judgment, and a limited risk of misappropriation of assets or financial misstatement. | 5 |
Low | Involves little to know professional judgement or estimates, and consists of specific transaction prices which are not subject to potential uncertainty. | 2 |
Control effectiveness represents how effective the current internal controls in place within a financial process are expected to be in preventing a financial misstatement from taking place or detecting it in a timely manner.
Scale | Definition | Factor |
High | There are highly effective processes currently in place to mitigate the risk of potential errors, and no issues have been noted during the past three years. | 0.4 |
Moderate | There are processes in place to address potential errors, but there have been one or more issues noted within the past three years. | 0.6 |
Low | There are no processes currently in place to specifically address potential errors within the transaction cycle. | 0.9 |
Risk likelihood represents the probability that a process will result in a financial misstatement
Scale | Definition | Value |
High | Almost certain to occur within the fiscal year | 8 - 10 |
Moderate | May occur within the fiscal year | 4 - 7 |
Low | Not likely to occur within the fiscal year | 1 - 3 |