Sub-Areas for Internal Controls Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
RANK
Risk Weights 7 4 3 6 5 8 2 1 36
Emphasis Area
and Sub-Area Business Process/Auditable Areas
Numbers
Provide Info.
Serv. 1
3 2 3 3 3 3 3 1 102
Develop and Monitor Information Systems
1 Standards
Customer
Service
Activities 1 3 3 3 3 3 2 3 2 99
2 Telephones
Account
Settlements 1
3 3 3 2 2 3 3 3 97
3 Adjustments/Correspondence
Provide Info.
Serv. 6
3 2 3 3 2 3 3 1 97
Systems Software and Programming
4 Maintenance Activities
Examine Returns
1
3 3 3 3 1 3 3 1 96
5 Identification and Selection of Returns
Privacy and
Security 2
3 2 3 2 3 3 2 1 94
Management Oversight of the Service's Security
6 Program
Remittance Proc.
1
2 3 3 3 2 3 3 1 94
7 Receipt and Control Activities
Collect Taxes 6
2 2 2 3 3 3 3 1 92
8 Suspended Accounts (includes Bankruptcies)
Provide Info.
Serv. 9
3 2 3 3 3 2 2 1 92
9 Computer Room/Facility Management
1 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Sub-Areas for Internal Controls Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
Invest. Criminal
Violations 1
3 2 1 3 2 3 2 3 91
Identification and Selection of Cases for
10 Investigation (Includes Info Gathering)
Procurement 2
3 2 3 2 2 3 2 3 91
11 Post-award
Provide Info.
Serv. 4
3 2 3 2 2 3 3 1 91
12 Systems Development Process
Collect Taxes 2
3 2 1 2 3 3 3 1 90
13 Remittance Processing (includes Forms 809)
Examine Returns
2
3 3 3 2 1 3 3 1 90
14 Management of Case Inventories
Procurement 1
3 2 3 2 2 3 2 2 90
15 Pre-award
Account
Settlements 2
3 3 3 2 2 2 3 3 89
16 District Office Adjustments
Account
Settlements 3
3 2 2 2 2 3 3 2 89
17 Service Center Collection Branch
Collect Taxes 7
3 2 2 3 1 3 3 1 89
Enforcement Actions (liens, levies, seizures and
18 sales)
Provide Info.
Serv. 3
3 2 3 3 2 2 2 1 87
19 Investment Decision Management Process
Collect Taxes 5
3 2 1 3 1 3 3 1 86
20 Offers in Compromise
2 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Sub-Areas for Internal Controls Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
Research 1
3 2 3 2 1 3 2 3 86
National Office Research and Analysis (NORA)
21 Activities
Rev. Acctg. 1
3 2 3 2 1 3 3 1 86
22 Accounting Function Activities
Provide Info.
Serv. 2
2 2 3 2 2 3 3 1 84
Requirements Management Activities (including
23 developing business cases)
Collect Taxes 4
3 3 2 3 1 2 2 1 83
24 Installment Agreements
Managing HR 2
2 2 2 2 2 3 3 3 83
25 Position Management and Classification Process
Collect Taxes 3
2 3 3 2 1 3 2 2 82
26 Uncollectible Accounts
Proc. Information
Returns 1
2 2 3 3 2 2 2 2 81
Magnetic and Electronic Media Transfer and
27 Security Controls
Secure
Delinquent
Returns 1 3 2 3 2 2 2 2 1 81
28 Secure Delinquent Returns
Examine Returns
3
3 2 3 1 1 3 2 2 79
29 Processing Exam Assessments and Payments
Managing HR 3
2 2 2 2 2 3 1 3 79
30 Labor Relations Process
Managing Real
Prop. 2
3 2 1 2 1 3 2 2 79
Maintenance and Disposal of Property and
31 Equipment
3 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Sub-Areas for Internal Controls Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
Proc. Information
Returns 2
2 3 3 3 2 1 3 2 79
32 Underreporter Program
Provide Info.
Serv. 5
2 2 2 3 2 2 2 1 77
Change Control Management Process (including
33 Configuration Management )
Provide Info.
Serv. 7
2 2 2 2 3 2 2 1 76
34 Product Assurance (SAT)
Customer
Service
Activities 3 3 2 1 2 2 2 2 1 75
35 Walk- in
Determine EO
Status 2
3 2 1 2 2 2 2 1 75
36 Examination of Case Inventories
Invest. Criminal
Violations 4
3 1 1 2 1 3 2 2 75
37 Seized Assets and Forfeitures
Process Returns
2
2 2 3 3 1 2 2 1 75
38 Data Conversion/Input Activities
Invest. Criminal
Violations 6
2 2 1 1 2 3 3 2 73
Investigative Imprest Fund (includes Undercover
39 expenditures)
Privacy and
Security 1
3 2 2 2 1 2 2 1 73
40 Effectiveness of Privacy and Disclosure Controls
Provide Info.
Serv. 8
2 2 3 2 2 2 1 2 73
41 Performance Management Process
Remittance Proc.
3
3 2 3 3 1 1 1 2 73
42 EFTPS/FTD Processing Activities
4 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Sub-Areas for Internal Controls Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
Invest. Criminal
Violations 5
2 2 1 1 2 3 3 1 72
43 Investigative Equipment
Managing HR 1
2 2 2 2 2 2 2 2 72
44 Determining Staffing Needs
Account
Settlements 4
2 2 2 2 2 2 1 2 70
45 Processing Division
Invest. Criminal
Violations 2
3 2 1 2 1 2 2 1 70
Management of Case Inventories (includes info
46 items)
Invest. Criminal
Violations 3
3 2 1 2 1 2 1 3 70
Case Closing Actions (prosecutions,
47 discontinued cases, probation, etc.)
Process Returns
4
2 2 3 2 1 2 2 1 69
48 Document Perfection - Error Resolution Activities
Budgeting 1
2 2 3 2 1 2 1 1 67
49 Budget Formulation and Execution
Customer
Service
Activities 2 3 2 2 1 1 2 2 1 67
Designing and Distributing Tax Forms and
50 Publications
Process Returns
1
2 1 3 1 1 3 2 1 67
51 Receipt and Control Activities
Process Returns
8
2 1 2 1 1 3 2 1 64
52 Notice Review
Budgeting 2
2 2 3 1 1 2 2 1 63
53 Receipts and Disbursements
5 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Sub-Areas for Internal Controls Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
Privacy and
Security 3
2 2 3 1 1 2 2 1 63
Operational Controls (including disaster recovery
54 and access to facilities)
Remittance Proc.
2
2 2 3 1 1 2 2 1 63
55 Lockbox Processing Activities
Settle Appeals 1
2 1 2 2 1 2 2 2 63
56 Management of Case Inventories
Managing Real
Prop. 1
2 2 1 2 1 2 1 2 62
57 Space Acquisition and Management Process
Privacy and
Security 4
2 2 2 1 1 2 3 1 62
Technical Controls (including audit trails, access
58 to systems, and telecom)
Approve and
Monitor EP 2
2 2 1 2 2 1 1 2 59
Actions to Monitor Adherence to Plans (funding
59 level of plan)
Process Returns
5
1 1 3 2 1 2 2 2 59
60 Document Perfection - Code and Edit Activities
Process Returns
7
1 1 1 2 1 3 1 2 59
61 Unpostable Activities
Procurement 3
1 2 1 2 1 2 2 2 57
62 Other Programs
Approve and
Monitor EP 1
1 2 2 2 2 1 1 3 56
63 Determination Letters
Determine EO
Status 1
1 2 2 2 2 1 1 3 56
64 Determination Letters
6 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Sub-Areas for Internal Controls Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
Process Returns
3
1 2 1 1 1 2 2 3 52
65 Quality Assurance Activities
Provide Info.
Serv. 10
1 1 3 1 1 2 2 1 52
Administration and Control of End-User
66 Computing Resources
Process Returns
6
1 1 1 2 1 2 1 1 50
Document Perfection - Rejects and Suspense
67 Activities
Collect Taxes 1
Management of Case Inventories
68 This sub area will be ranked in future years
7 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Major Areas for Emphasis Area Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
RANK
Risk Weights 8 5 4 7 6 3 2 1 36
Business Process Empahsis Areas (source of ranking data)
3 2 3 3 2 3 3 1 95
1 Providing Information Services - (overall narrative)
3 3 3 2 2 3 3 3 86
2 Account Settlements and Adjustments - (average)
2 3 3 3 2 2 3 2 85
3 Processing Information Returns - (average)
3 3 3 2 1 3 3 1 85
4 Examine Questionable Returns - (average)
3 2 2 3 2 3 3 1 84
5 Collect Delinquent Taxes - (average)
3 2 3 3 1 2 2 1 84
6 Processing Tax Returns - (overall narrative)
3 2 3 2 2 2 2 1 83
7 Secure Delinquent Returns - (from general narrative)
3 2 3 2 1 3 2 3 82
8 Research and Development - (average)
3 2 2 2 2 2 2 1 82
9 Customer Service Activities - (average)
8 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Major Areas for Emphasis Area Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
2 2 2 2 2 3 2 2 76
10 Procuring Goods and Services - (average)
2 2 3 3 1 2 2 1 76
11 Remittance Processing - (overall narrative)
3 2 1 2 2 2 2 1 75
12 Determine Qualification for Exempt Organization Status - (general narrative)
2 2 2 2 2 3 2 3 75
13 Managing and Developing Human Resources
3 2 2 1 2 2 2 1 72
14 Ensuring Privacy and Security of Data - (overall narrative)
3 2 1 2 1 3 2 2 67
15 Managing Real Estate, Property, and Equipment - (average)
2 2 3 2 1 2 2 1 65
16 Budgeting and Financial Management - (average)
1 2 1 2 3 1 1 3 62
17 Revenue Accounting - (1 sub-area)
1 2 2 2 2 1 2 2 61
18 Investigate Criminal Violations - (average)
2 1 2 2 1 2 2 2 61
19 Provide Settlements for Appeals - (1 sub-area)
1 2 1 2 2 1 1 2 55
20 Approval of and Monitor Adherence to Employee Plans - (general narrative)
9 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011
Major Areas for Emphasis Area Risk Assessment (SORTED)
Assessment of Risk
Adequacy and
Stakeholder Data Analysis Size of New Organizational Effectiveness Prior Last Total Risk
Concerns for Trends Program Program Change of Internal Findings Coverage Score
Controls
20
10 of 10 ddda20f3-9c36-42df-ad52-f6b81d1ba97f.xls 10/26/2011