Account Mapping 517



  • A question for those who have performed an account mapping already: Have you linked the financial reporting assertions to balance sheet accounts only or also to P_and_L accounts?
    Thanks in advance.



  • You need to do both P-and-L and Balance Sheet.



  • _at_Denis: Thanks. But it is hopefully not required to address every single SAP-account, since there might be 10 different A/R accounts? Not to mention the amount of expense accounts… 8O I guess it is fine, if we keep it general - say A/R only and not all the 10 A/R accounts? Or am I wrong?.



  • We didn’t map at the detail account level - only at a roll-up level in between the detail level and the financial statmement level. This is primarily due to having multiple subsidiaries with differing detail charts of accounts. We do have commonality one level below external financial statements, though.
    Of course, you will need to ensure that you receive adequate coverage when you test the various accounts by testing at a detail level (transaction processing, reconciliations, etc.).



  • _at_Denis: Thanks. But it is hopefully not required to address every single SAP-account, since there might be 10 different A/R accounts? Not to mention the amount of expense accounts… 8O I guess it is fine, if we keep it general - say A/R only and not all the 10 A/R accounts? Or am I wrong?. %0AYou may not need to map at each SAP account level as you are making an assertion on the financial statements. That said your 10 A/R accounts may map to or be covered by the same process%0AHowever, you may need to demonstrate to your auditor that your processes give you sufficient coverage over each financial statements line item e.g. you may need to demonstrate that your assessed order to cash processes cover 70% plus of the value of revenue.


Log in to reply