Risks

Risks

Buddy James
1. Has companies that regularly fail
  1. Inherent Risk
2. Inherent Risk of family business
  1. Collusion
  2. Where is the most profit for buddy
3. Own Scary Spices
  1. Can create contracts alone
    1. No Segregation of duties
      1. Less controls as easier to run?
    2. Concerns about rates
      1. Is always looking for investors
Oliver James
2. Losing Interest in Business
  2. Quality of character
3. Cash Advances
  1. Are these in the journals
  2. Who is giving permission for this?
    1. Uncle CFO?
  3. Licence fee is 2nd biggest expsnes
    1. Done at correct price?
4. Ignorant or involved?
Inventory
1. Foreign Invoices
  1. Suspense Account
  2. Incorrectly Recognised due to timing errors
    1. #88888 from barings bank
  3. Is Money going missing
2. No controls on invoice/receipt confirmation
  1. Part deliveries accepted and paid
3. Stock goes out of date
  1. Is this done correctly
4. Small Products easily stolen
5. Warehouse Controls
  1. Warehosue Existence?
  2. Access and movement controls
Revenue
1. Who are these unpaying customers
  1. Funneling money out
2. Is all the revenue from legitimate sources
  1. Is it all there??
3. How is the income recognised?
4. Past subscriptions were not recorded
  1. What does the audit trail show us
  2. Where is this money now
  3. Why were they not recorded
5. Vouchers are incorrectly treated
  1. Should be recognised when customer activates, treated as liability until tthen
  2. Can be recognised if gone unused after x years
    1. Check usual business practice
6. Where is the profit?
Provision
1. Has this been expensed

Next up

Description

Resource summary

Similar

	Created by laur ndhd about 9 years ago