Please correct answer and don't used hand raiting FinTech Group provides financial services to its clients. They process their client's credit ratingsbased on various parameters. In one case, the processor made an input error, during whichhe inputs R100,000 instead of R1,000,000. As a result, the client's credit rating changed fromAA to C (which is less positive than AA). Critically evaluate the operational risk exposure in thissituation and discuss how such incidences can be mitigated going forward.

Step 1: Explained above Step 2: Step 3: Step 4:

Answered: FinTech Group provides financial…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 15CYBK

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Similar questions

Using the following table as a guide, describe for each function (see Figure 11.1): A risk (an event or action that will cause the organization to fail to meet its goals/objectives). A control/process or use of technology that will address the risk. Function Risks Controls and Technology Marketing Finance Billing AR (debit) Sales (credit) Collections Cash (debit) AR (credit)
Companies like to use statistical scoring systems, such as the Z score, to assess a customer's creditworthiness because: they provide an absolute determination of which customers deserve credit. their use keeps the credit department busy. they provide information related to the 5 Cs of credit. they eliminate all need for full-blown detailed credit checks. they provide a quick first-cut estimate of creditworthiness.
A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company’s strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company’s performance to that of its competitors or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Consider the following scenario: You work as an analyst at a credit-rating agency, and you are comparing firms in the construction and engineering sector. One company in the portfolio of companies you are analyzing is a Chinese firm. This firm stands out in the ratio analysis, because the company’s financial ratios are substantially lower than identical financial ratios of the other firms in the sector. You do not dissect the results of the ratio analysis and report this firm as an under-performing company. Which of the following statements about…
Which of the following is TRUE about Credit Score / FICO Score: Group of answer choices the lower the number, the better chances to obtain credit at a very low cost randomly assigned number; Experian, Equifax, and TransUnion use to monitor Covid-19 tracing typically between 1 and 10; calculated from the highest value assigned by the government typically between 300 and 850; calculated from your credit report to gauge your reliability as a borrower
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Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and to give suggestions. He came to know that his company is entering into a new product line, so he started discussing about it on various places and about its projection in the future. In this situation there is a chance of _________________. a. None of the options b. Familiarity threat c. Self review threat d. Advocacy threat Clear my choice
Risk Management in Accounting: ABC Insurance Company is evaluating its financial risks. Discuss the identification and assessment of financial risks in the insurance industry. Propose risk mitigation strategies and explain the role of internal control systems in managing risks. How can risk management contribute to the stability of an insurance company? Objective Type Question: What is the primary purpose of risk mitigation strategies in accounting? a) To eliminate all risks b) To transfer risks to external parties c) To reduce the impact or likelihood of risks d) To ignore potential risks
Leonard Moses is planning to grow its customer base and is in the process of creating an online web-based sales ordering system for customers to purchase products using personal credit cards for payment. At a recent meeting with the internal auditors, it was highlighted that there are risk associated with this system. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk.
Consider the following questions on credit risk a) Describe the Basel II framework and its drawbacks b) Sean who is a credit risk analyst has come up with the following counts of good andbadcredit score models.
If bad credit risks are the ones who most actively seek loans and, therefore, receive them from financial intermediaries, then financial intermediaries face the problem of a. costly state verification. b. free-riding. O c. moral hazard. O d. adverse selection.
QuickBank has decided to lower the interest rate it charges on business loans in order to attract more business. It has succeeded in boosting the number of loan applications, but it finds that many of the applicants turn out to be very poor credit risks. This illustrates the problem known as adverse selection moral hazard the principal-agent porblem diversification
XYZ is considering the option to invest excess cash in short-term financial instruments. XYZ wishes to have access to the investments as quickly as possible in order to pay bills and meet employee payroll and have a return on their investment. Briefly discuss which factors you would be focusing on under each of the six (6) steps. Briefly describe the research tools available including the CCH Answer Connect and CCH Accounting Research.

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