Quarterly Risk Review - Financial System
- Apr 28
- 2 min read
Start Date: 11/10/25
Why the Office of the City Auditor (OCA) did this project
OCA’s data analytics include a component that shows trends in financial risks. The analysis compares each financial module’s risk relative to the other financial modules. This provides information to help choose which financial module to focus on for a deeper analysis of risk indicators. This review focuses on transactions in accounts payable, purchasing, and general ledger modules that occurred in the two-week period following year-end close to fiscal year 2025. These areas had the largest month-over-month percent change in flag counts for the quarter ending 9/30/25.
Project Scope
This review evaluates transactions for quarter ending 9/30/25 in modules accounts payable, purchasing and general ledger that occurred during the highest-risk period of July 1, 2025 –July 15, 2025.
Why audit this topic?
The IIA established new standards in 2025. This review will identify gaps between the old and new standards and will establish an action plan to ensure 100% compliance to the new standards by September 2025.
How OCA did this project
Project procedures:
Using data analysis, narrow the date range for the quarter to a shorter period with largest number of high-risk transactions.
Analyze transactions within selected date range and financial modules to identify number of flags associated with each one
Exclude transactions with fewer than three flags
Select sample of higher-risk transactions from each module for testing
Analyze results.
Key Observations
There were no findings within the scope of our analytic testing.
Quarterly Risk Review Audit Report
Audit objective
Review transactions related to the Purchasing, Accounts Payable, and General Ledger Modules for the quarter end September 30, 2025.
Procedures
OCA reviewed 12 invoices, 3 purchase orders and 4 manual journal entries that occurred during year-end-close. These transactions were chosen due to the high number of flags associated with the transactions.
Accounts Payable
Confirmed that all vendors paid were present in the City’s enterprise resource planning vendor management module.
Reviewed supporting documents in the City’s document management system to verify that the work associated with each invoice occurred within the fiscal year in which the invoice was recorded in the general ledger and that each invoice had adequate supporting documentation in the document management system.
Purchasing
Verified that the vendor existed in the City’s enterprise resource planning vendor management module and confirmed that the item(s) on the purchase order were received and properly documented.
General Ledger
Reviewed each entry to confirm it had the appropriate workflow approval and verified that the entry included a clear and complete description to support the purpose and nature of the transaction.
Assessed each entry to ensure it was recorded in the correct fiscal year, supporting proper period reporting and financial statement accuracy.