Accounting and finance risks encompass a variety of challenges that companies must manage to ensure accurate and reliable reporting. These risks can stem from internal operational inefficiencies, compliance failures with financial regulations, market fluctuations, fraudulent activities and technological vulnerabilities. Key issues include errors in data handling, nonadherence to standards like GAAP or IFRS, market-driven financial inconsistencies, intentional financial misstatements, and cybersecurity threats that can lead to significant financial discrepancies.

To effectively address these risks, companies should implement comprehensive strategies that include robust internal controls, regular audits, continuous staff training and the adoption of advanced technological solutions. Strong internal controls such as segregation of duties and transaction approval processes help prevent inaccuracies and fraud, while regular audits and ongoing training ensure compliance and operational efficiency. Additionally, leveraging modern technology can safeguard against data breaches and enhance the overall security and accuracy of financial data.

Moreover, companies should develop a proactive risk management approach that involves thorough risk assessments and a clear communication strategy with all stakeholders. This ensures not only the mitigation of potential risks but also builds trust and transparency with investors, regulatory bodies and other stakeholders. By maintaining a vigilant and responsive approach to financial statement risks, companies can uphold their financial integrity and sustain long-term success.

1. Accounting and Finance Organizational Assessment

Perform a thorough evaluation of your accounting and finance functions with the resources in this sample audit report. According to this sample, continued growth targets will require stable, scalable support capabilities around project accounting, utility accounting, cash application and monthly reporting, and roles and responsibilities need to be defined to best support accounting’s transactional, ad-hoc and “high-touch” needs.

2. Finance and Accounting Risk Awareness Audit Report

Explore potential finance and accounting risks with this audit report, featuring a risk awareness and scenario analysis for an organization’s finance and accounting function. This report encompasses a detailed identification of inherent and residual risks, along with a systematic evaluation of existing controls and mitigation strategies. By using a scenario analysis compiled from stakeholder interviews and document reviews, organizations can prioritize risks based on their likelihood and impact. 

3. Accounting System Security Policy

This policy establishes the standards and procedures for accounting system security in compliance with management’s objectives. According to this policy, an accounting system request form is necessary to gain access to the accounting system and must be completed and approved by the requestor’s manager. A sample accounting system request form is provided in this policy. 

4. Finance Code of Conduct Policy

This sample policy serves as a code of conduct specific to senior financial officers of a company with the purpose of documenting a clear understanding of roles and responsibilities. Under this policy, a company would adopt a separate finance code of conduct specific to all senior financial officers of the company. The individuals mentioned above are also expected to abide by the company code of conduct that is distributed to all employees. 

5. Accounting for Goodwill Policy

The primary goal of this policy is to help document a company’s process and procedures for accounting for goodwill under SFAS 142, “Goodwill and Other Intangible Assets” to verify that goodwill is periodically reviewed for impairment and is properly valued and reported. SFAS 142 applies to goodwill only subsequent to acquisition as determined in accordance with SFAS 141 or SFAS 141(R).

6. 2024 Finance Trends Survey Report

To excel in their expanding roles and support the growth and success of the enterprise, CFOs and finance leaders must apply their expertise, and their influence, throughout the organization. Doing so requires first-rate leadership competencies and proficiency in engaging a diverse group of colleagues and stakeholders. Protiviti’s latest Global Finance Trends Report reveals a tale of transformation for CFOs whose responsibilities continue to widen.

7. Accounting Policies and Procedures Memo

This sample memo serves as a report of an internal audit function’s high-level assessment of the company’s existing accounting policies and procedures (P&Ps). The objectives of the review were to evaluate the completeness and adequacy of the company’s existing accounting P&Ps, identify any gaps per applicable regulations and best practices/benchmarks, and evaluate the organization's adherence to existing accounting P&Ps and the existence of processes/procedures in place to facilitate adherence or performance.

8. Intercompany Accounting Policy

This tool contains three sample policies that outline guidelines and procedures related to intercompany transactions. Sample 1 focuses on the procedures and guidelines for managing intercompany transactions within a corporate framework. The purpose of this policy is to ensure that assets, liabilities, revenues and expenses are allocated correctly to the appropriate legal entities based on the economic activities and obligations incurred. This is critical for accurate financial reporting and compliance with generally accepted accounting principles (GAAP).

9. Finance Department Review Report

This Finance Department Review Report can be used by auditors looking to identify performance gaps and improvement opportunities in the finance department. In this sample, internal audit's work consisted of conducting a kickoff meeting with the finance department leadership team and conducting an analysis of the finance department infrastructure utilizing the internal auditor's six elements of the infrastructure framework.

10. Finance Industry Going Concerns Trends

A going concern audit opinion indicates substantial doubt about a company’s ability to remain solvent over the next year. In Audit Analytics’ most recent published report, Going Concerns: A 22-Year Review, they provide a comprehensive overview of trends in the SEC Audit Opinion market. Among companies in the finance industry, with a classification of a finance SIC code, the total number of audit opinions increased by 23.6% in fiscal year (FY) 2021. In this article, Audit Analytics further examines the notable upsurge of going concerns in the finance industry.