Risks and Controls

A key element of the Financial Management Framework is the constant assessment of Defence’s financial risks and the financial controls.
This is done through a systematic three step approach covering:

• Control self assessments
• Monitoring
• Independent testing

A rigorous process was implemented to identify the key financial risks and their associated controls against all balance sheet accounts.

Risks are identified for each balance sheet account at the business process level within the account. Process-level financial risks are defined as risks of misstatement to relevant financial statement assertions. Considering the risk and types of misstatement that occur at process level is an important step in assuring that focus is placed upon those controls that are designed to mitigate materiel financial risks. Controls are identified and linked to the associated risk (and assertion).

An example of the template used is provided:

• Template example (11.7kb, Updated 4 April 2007)

To view PDF documents you will need Adobe Reader

Top of page