RubinBrown Team Member Manual

POLICY CONTINUED Policy Title: Policy Number:

Section: Client Acceptance Risk Evaluation Policies & Procedures 1212 Risk Management

Since judgment must be used due to the subjective nature of the rankings, the following are guidelines to assist in making the assessments: Risk Rating Assessment Guidelines

Financial Risk Client in financial difficulty with plans and financing available

Moderate or Significant

Client in financial difficulty with either no plans or no financing available

High

Management Risk Lack of integrity or disagreement with accountants

High

Frequent litigation or aggressive accounting history

Moderate or Significant

Engagement Risk No RubinBrown expertise or high risk industry

Significant or High

Internal control weaknesses

Significant or High

Outside investors or potential sale

Moderate

Regulatory Risk Independence or conflicts of interest

Significant or High

Regulatory agency – SEC

High

–Others

Moderate or Significant

Business Risk Low budgeted realization

Moderate or Significant

Frequent accounting firm changes

Moderate or Significant

Timely payment history

Moderate or Significant

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