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Risk Scoring Matrix

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					Scoring basis

The following basis was used for this scoring mehtod:
           1 A high risk is double the scoring weight than a medium risk
           2 A medium risk is double the scoring weight than a low risk.

                Risk level
                H            4
                M            2
                L            1
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                                                                                                      Visit 1            Visit 1
                                                                                            Score     Score   Total      Score      Total
Referenc Objective                            Risk                                 Guide   weighting achieved           achieved
BE60/00 Accounts Payable - (include
         contracted work in / out)
BE60/01 Changes to the masterfile are         Ficticious vendors may be created     H         4       66%     11%          66%      11%
         adequately monitored to ensure       on the masterfile that may lead to
         completeness, accuracy and           payments to these invalid vendors.
         validity of the vendor masterfile.
BE60/02 Dormant vendor accounts are           Dormant vendor accounts may           L         1       33%      1%          66%       3%
         removed from the vendor              not be removed from the vendor
         masterfile.                          masterfile, which may lead to an
                                              outdated vendor masterfile.
BE60/03    Approved goods ordered are         Items ordered may not be              M         2      100%      9%          66%       6%
           delivered.                         delivered, which may lead to
                                              delays or payments made for
                                              items not ordered.
BE60/04    Purchases are made at the          Purchases are not made at the         M         2       66%      6%          55%       5%
           correct / most beneficial prices.  correct / most beneficial prices,
                                              which may lead to the incorrect
                                              prices being charged and paid.
BE60/05    Payments are made for items /      Payments may be made for items        H         4       33%      6%          22%       4%
           services received.                 / services not received, which may
                                              lead to financial losses.
BE60/06    Vendor balances are reviewed       Vendor balances may not be            M         2      100%      9%          11%       1%
           and reconciled to vendor           reviewed and reconciled to vendor
           statements.                        statements, which may lead to
                                              misrepresentation and incorrect
                                              payments made.
BE60/07    Vendor control account balances Vendor control account balances          H         4       66%     11%          66%      11%
           are reviewed and reconciled to the may not be reviewed and
           general ledger.                    reconciled to the general ledger,
                                              which may lead to
                                              misrepresentation of balances.
BE60/08    Manual documents are               Manual documents may not be           L         1       33%      1%          77%       3%
           safeguarded.                       safeguarded, which may lead to
                                              misappropriation of these
                                              documents.
BE60/09    The Accrual accounts are           The Accrual accounts may not be       M         2      100%      9%          33%       3%
           complete, accurate and reviewed complete, accurate and reviewed
           on a regular basis.                on a regular basis, which may
                                              lead to long outstanding /
                                              unidentified balances.
BE60/10    Adequate segregation of duties     Inadequate segregation of duties      L         1       33%      1%          66%       3%
           exists.                            may exist, which may lead to the
                                              non detection of collusion and
                                              fraud.
BD60/99    Total for Accounts Payable -                                                       23              65%                    50%
           (include contracted work in /
           out)




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                                                                                                         Visit 1            Visit 1
                                                                                               Score     Score   Total      Score      Total
Referenc Objective                             Risk                                   Guide   weighting achieved           achieved
BD60/00 Fixed Assets
BD60/01 Acquisitions are approved.            Unauthorised fixed asset additions       L         1       66%      4%          33%       2%
                                              are made.
BD60/02 Acquisitions are correctly marked     The fixed assets acquired may not        M         2       66%      8%          55%       7%
        and the fixed asset register is       be marked and the fixed asset
        updated with the correct details.     register may not be updated with
                                              the correct details, which may
                                              lead to the misappropriation of
                                              fixed assets.
BD60/03   Acquisitions are correctly          The fixed assets acquired may not        M         2      100%     13%          11%       1%
          allocated to the correct centre and be allocated to the correct centre
          location.                           or centre location, which may lead
                                              to the misappropriation of fixed
                                              assets.
BD60/04   Fixed Asset transaction are         Fixed Asset transaction may not          H         4       33%      8%          99%      25%
          accurately and completely           be accurately and completely
          captured to the subsidairy and      captured to the subsidairy and
          general ledger.                     general ledger, which may lead to
                                              misrepresentation.
BD60/05   Disposals are properly authorised. Unauthorised disposals may be             L         1       45%      3%          88%       6%
                                              made.
BD60/06   Disposals are properly performed Disposals may not be properly               L         1       22%      1%          11%       1%
          using the correct means of          performed using the incorrect
          disposal.                           means of disposal, which may
                                              lead to financial losses.
BD60/07   Proceeds from disposals             Proceeds from disposals may not          L         1       11%      1%          99%       6%
          accounted for.                      be accounted for.
BD60/08   Adequate segregation of duties      Inadequate segregation of duties         H         4       99%     25%          88%      22%
          exists.                             may exist, which may lead to the
                                              non detection of collusion and
                                              fraud.
BD60/99   Total for Fixed Assets                                                                 16              63%                    69%
BA60/00   Treasury
BA60/01   All receipts and payments are       The bank account is not                  H         4       90%     23%          77%      19%
          recorded in the correct accounting reconciled to the bank statement,
          period.                             which may lead to unidentified
BA60/02   Approved payments are made.         discrepancies.
                                              Approved payments may not be             M         2       80%     10%          66%       8%
                                              made, which may lead financial
                                              losses.
BA60/03   Sundry receipts (not debtor         Sundry receipts may not be               M         2       70%      9%          55%       7%
          receipts) are safeguarded and       safeguarded or may not be
          banked on a timely basis.           banked on a timely basis, which
                                              may lead to financial losses.
BA60/04   Adequate cover is taken for         Cover may not be taken                   M         2       50%      6%          44%       6%
          foreign currency transactions.      increasing the risk of foreign
                                              currency fluctuations and financial
BA60/05   Total forex cover is reconciled to losses.
                                              Forex liability is not covered, which    M         2      100%     13%          33%       4%
          total forex liability.              may lead to unrecorded liability /
                                              foreign currency fluctuations and
                                              financial losses.
BA60/06   Adequate segregation of duties      Inadequate segregation of duties         H         4       25%      6%          22%       6%
          exists.                             may exist, which may lead to the
                                              non detection of collusion and
                                              fraud.
BA60/99   Total for Treasury                                                                     16              66%                    50%




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                                                                                                  Visit 1            Visit 1
                                                                                        Score     Score   Total      Score      Total
Referenc Objective                         Risk                                Guide   weighting achieved           achieved
BJ60/00 Financial Reporting
BJ60/01 The management accounts are        The management accounts are          H         4       25%      6%          11%       2%
         accurately maintained.            incorrectly maintained, which may
                                           lead to misrepresentation.
BJ60/02   Intercompany balances are        Intercompany accounts are not        L         1       50%      3%          99%       6%
          reconciled and confirmed on a    reconciled to the supplier
          regular basis.                   statement / remittance advice,
                                           which may lead to unidentified
BJ60/03   Adjustments made by journal are discrepancies.
                                           Adjustments made by journal may      H         4       75%     17%          88%      20%
          valid and approved.              be invalid and may not be
                                           unauthorised.
BJ60/04   VAT returns are timely submitted VAT returns may not be submitted     L         1      100%      6%          77%       4%
          and timely paid.                 in time and may not be paid in
                                           time, which may lead to fines and
                                           penalties.
BJ60/05   System access is granted to the  System access may not be             H         4       58%     13%          66%      15%
          appropriate employees.           granted to the inappropriate
                                           employees, which may lead to
                                           invalid / unauthoried changes
BJ60/06   Other debit and credit balances  made.debit and credit balances
                                           Other                                M         2       88%     10%          55%       6%
          are reviewed, reconciled and are may not be reviewed, reconciled
          substantiated.                   and may note be substantiated,
                                           which may lead to
                                           misrepresentation.
BJ60/07   Suspense accounts are reviewed, Suspense accounts may not be          M         2       59%      7%          44%       5%
          reconciled and cleared within a  reviewed, reconciled and may not
          reasonable time.                 be cleared within a reasonable
                                           time, which may lead to long
                                           outstanding items.
BJ60/99   Total for Financial Reporting                                                   18              60%                    57%




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                                                                                                   Visit 1            Visit 1
                                                                                         Score     Score   Total      Score      Total
Referenc Objective                          Risk                                Guide   weighting achieved           achieved
BF60/00 Payroll (include Subsistance
         and Travel allowances)
BF60/01 Employees on the payroll          Changes in the payroll masterfile      L         1       12%      0%          44%       1%
         masterfile are valid employees.  may not be valid, which may lead
                                          to payments to ficticious
BF60/02 Changes in the payroll masterfile employees. the payroll masterfile
                                          Changes in                             M         2       24%      1%          33%       2%
        are valid.                        may not be valid, which may lead
                                          to payments to ficticious
BF60/03 Casual recruitments are           employees.
                                          Casual recruitments may not be         L         1       48%      1%          22%       1%
        approved.                         approved, which may lead to
                                          invalid hiring of casuals.
BF60/04 Hours worked are reviewed and     Hours worked may not be                M         2       36%      2%          11%       1%
        approved.                         reviewed and approved, which
                                          may lead to incorrect payments
BF60/05 Salary and wage payments made made. and wage payments made
                                          Salary                                 M         2       57%      3%         100%       6%
        are accurate.                     may not be accurate, which may
                                          lead to incorrect payments made.
BF60/06 Time worked are correctly         Time worked may not be correctly       H         4       55%      6%          11%       1%
        reported.                         reported, leading to incorrect
                                          management information and
                                          incorrect billings.
BF60/07 Subsistance and Travel            Subsistance and Travel                 M         2       23%      1%          22%       1%
        allowances and other expenses     allowances and other expenses
        claimed are valid.                claimed may not be valid, which
                                          may lead to payment of invalid
BF60/08 Subsistance and Travel            expenses. and Travel
                                          Subsistance                            M         2       98%      6%          33%       2%
        allowances and other expenses     allowances and other expenses
        are recovered from the auditees. may not be recovered from the
                                          auditees, which may lead to
BF60/09 The payroll system agrees with    financial losses.
                                          The payroll system may not agree       H         4       89%     10%          44%       5%
        the general ledger.               with the general ledger, which
                                          may lead to incorrect payments
                                          and misrepresentation.
BF60/10 Correct payments are made.        Correct payments may not be            H         4       54%      6%          55%       6%
                                          made, which may lead to financial
                                          losses.
BF60/11 Deductions are timely paid.       Deductions may not be timely           M         2       87%      5%          66%       4%
                                          paid, which may lead to the loss of
                                          employee benefits.
BF60/12 Leave information are adequately Leave information may not be            L         1       76%      2%          77%       2%
        maintained.                       accurately maintained, which may
                                          lead to leave taken in excess of
                                          available leave.
BF60/13 Approved leave are taken.         Unauthorised leave may be taken,       M         2       65%      4%          88%       5%
                                          leave in excess of the available
                                          leave may be taken.
BF60/14 Terminations are processed on a Terminations may not be                  L         1      100%      3%          99%       3%
        timely and accurate manner.       processed on a timely and
                                          accurate manner, which may lead
                                          to employees being paid after
BF60/15 Adequate segregation of duties    being terminated.
                                          Inadequate segregation of duties       H         4       55%      6%          6%        1%
        exists.                           may exist, which may lead to the
                                          non detection of collusion and
                                          fraud.
BF60/99 Total for Payroll (include                                                         34              60%                    42%
        Subsistance and Travel
        allowances)




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                                                                                                   Visit 1            Visit 1
                                                                                         Score     Score   Total      Score      Total
Referenc Objective                         Risk                                 Guide   weighting achieved           achieved
BB60/00 Accounts Receivable
BB60/01 Changes in the debtors masterfile Changes in the debtors masterfile      H         4       78%     10%         100%      13%
         are valid.                        may not be valid, which may lead
                                           to an outdated / incorrect debtors
                                           masterfile.
BB60/02 Changes to the biling rate         Changes to the billing rate           M         2       98%      6%          33%       2%
         masterfile are adequately         masterfile may not be monitored,
         monitored to ensure               which may lead to incorrect prices
         completeness, accuracy and        being charged to customers.
BB60/03 validity of the price masterfile.
         Correct invoicing occurs.         Incorrect invoicing may occur,        M         2       86%      6%          15%       1%
                                           which may lead to financial
BB60/04 Processing of manual documents losses.
                                           Processing of manual documents        L         1       82%      3%         100%       3%
         are timely, accurate and          (manual documents used due to
         complete.                         system downtime) may not be
                                           performed on a timely, accurate
                                           and complete manner, which may
                                           lead to stock losses due to
                                           deliveries made not invoiced.
BB60/05 Credit is granted to valid claims. Credit may not be granted to valid    L         1       80%      3%          11%       0%
                                           claims, leading to invalid credit
                                           notes issued / financial losses.
BB60/06 Claims are resolved and            Claims may not be resolved and        L         1       25%      1%         100%       3%
         processed on a timely basis.      processed on a timely basis,
                                           which may lead to customer
                                           dissatisfaction.
BB60/08 Debtor receipts are safeguarded. Receipts may not be safeguarded,        L         1      100%      3%          88%       3%
                                           which may lead to
                                           misappropriation of receipts.
BB60/09 Receipts are processed on a        Receipts may not be processed         M         2       68%      4%         100%       6%
         timely, accurate and complete     on a timely, accurate and
         basis.                            complete basis, which may lead to
                                           misappropriation of receipts.
BB60/10 Debtor balances are complete,      Debtor balances may not be            M         2       61%      4%          87%       6%
         accurate and are reviewed by      complete, accurate and may not
         senior managment.                 be reviewed by senior
                                           management, which may lead to
                                           misrepresentation and incorrect
                                           billings.
BB60/11 Debtor balances are correctly      Debtor balances may not be            H         4       37%      5%         100%      13%
         stated in the general ledger.     correctly stated in the general
                                           ledger.
BB60/12 Adjustments made by journal are Adjustments made by journal may          H         4       36%      5%          52%       7%
         valid and approved.               be invalid and may not be
                                           unauthorised.
BB60/13 Account balances are               Account balances may not be           M         2       63%      4%         100%       6%
         appropriately monitored.          appropriately monitored, which
                                           may lead to not identifying
                                           possible bad debt.
BB60/14 Write-offs are approved and        Write-offs may not be approved        L         1      100%      3%          50%       2%
         reviewed.                         and reviewed, which may lead to
                                           unapproved adjustments made to
                                           the accounts.
BB60/16 Adequate segregation of duties     Inadequate segregation of duties      H         4       50%      6%          50%       6%
         exists.                           may exist, which may lead to the
                                           non detection of collusion and
                                           fraud.
BB60/99 Total for Accounts Receivable                                                      31              63%                    72%




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                                                                                                  Visit 1              Visit 1
                                                                                        Score     Score   Total        Score      Total
Referenc Objective                        Risk                              Guide      weighting achieved             achieved

         Totals                                                            Process               Rating   Overall       Rating   Overall
                                                                           weighting                       rating                 rating
 BD60    Total for Accounts Payable - (include contracted work in / out)     25%                  65%     16.21%         50%     12.55%
 BD60    Total for Fixed Assets                                              15%                  63%     9.41%          69%     10.42%
 BA60    Total for Treasury                                                  10%                  66%     6.63%          50%      4.95%
 BJ60    Total for Financial Reporting                                       20%                  60%     11.91%         57%     11.49%
 BF60    Total for Payroll (include Subsistance and Travel allowances)       15%                  60%     8.94%          42%      6.23%
 BB60    Total for Accounts Receivable                                       15%                  63%     9.40%          72%     10.78%
                                                                            100%                            62%                    56%




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