Evidence before confidence
Describe the evidence chain needed to support a regulatory reporting number.
The move: build an evidence chain for every important number. A defensible regulatory report connects four things: source, transformation, control, and review. Source is the system extract or official input. Transformation is the mapping, calculation, or judgment that converts input into report line. Control is the validation, reconciliation, threshold check, or approval that detects error. Review is the documented conclusion, including how exceptions were resolved. COSO's control logic is useful because it separates belief from evidence. A manager can be confident because a good analyst prepared the number, but that is not the same as a control. The control must…
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