risk
Overstatement of assets/revenue (existence & occurrence)
Revenue, receivables, inventory, capitalized assets, prepaid expenses, treasury investments, or tax assets recorded without underlying existence or occurrence — inflating the balance sheet and income statement.
Record JSON · Open in map · Data retrieval guide
Catalog revision: f368a6cce277037e4b1e1ff46004e3acd295f96c9ac63a411a0e45775a7f468e. A connection does not establish full coverage.
Attributes
- category
- financial_reporting
- domain
- Financial Reporting Controls (SOX)
- taxonomy
- sox-rmm-assertion
- inherent_rating
- high
Details
- risk_id
- fin-existence-overstatement
- category
- financial_reporting
- likelihood
- medium
- impact
- high
- inherent_rating
- high
- treatment
- mitigate
- taxonomies
- sox-rmm-assertion
Source
No record-specific source URL is provided.
Connections
- UC-FIN-10 — Safeguard assets and stored financial data mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- primary
- rationale
- Periodic counts reconciled to records verify asset/inventory existence, catching overstatement.
- UC-FIN-04 — Authorize transactions with attributable approvals mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- primary
- rationale
- Approval per delegation-of-authority before recording prevents unauthorized/fictitious transactions.
- UC-FIN-07 — Control automated processing and resolve exceptions mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- related
- rationale
- Three-way match prevents recording purchases/payables without underlying receipt.
- UC-FIN-02 — Review financial results and the period-end close mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- primary
- rationale
- Analytical review of balances and reconciliations detects overstated or non-existent assets and revenue.
- UC-ACCESS-20 — Ensure complete, accurate, and authorized data processing mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- related
- rationale
- Authorization validation of inputs reduces unauthorized/fictitious entries entering processing.
- UC-FIN-03 — Perform and review account reconciliations mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- primary
- rationale
- Reconciliation identifies recorded balances lacking support, catching overstatement.
- UC-FIN-05 — Segregate incompatible financial duties mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- related
- rationale
- Separating authorization from recording reduces unauthorized/fictitious entries inflating balances.
- UC-BCDR-14 — Embed control activities in business processes mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- related
- rationale
- Authority/validity controls reduce recording of invalid or unauthorized transactions.
- UC-FIN-08 — Control interface transfers and output delivery mitigates Overstatement of assets/revenue (existence & occurrence)
- strength
- related
- rationale
- 'Processed only once' controls prevent duplicate records inflating balances.