Forvis Mazars
02 / 09

KARMA

Knowledge-Assisted Risk Mapping Assessment. Where lies the risk?

MAM: Risk Identification & Assessment
ISA: ISA 315R 2019
Module: operations.audit.karma

Mission

This programme is an ABI module with its own agent and Nexus app. Production tooling for each sub-solution is not built yet. The list below is the mission contract from the digested catalog.

Sub-solutions (3)

Task-skill pairs (16)

IDSub-solutionTaskSkill
K1-01KARMA-1Extract key financial metrics from client FS (revenue, EBITDA, working capital, leverage ratios)FSMetricExtractorSkill
K1-02KARMA-1Benchmark client metrics against sector peers using the Forvis Mazars Atlas databaseSectorBenchmarkSkill
K1-03KARMA-1Identify accounts and areas where the client deviates materially from sector expectationsOutlierFlagSkill
K1-04KARMA-1Identify entity-level risk factors (complexity, unusual transactions, sector-specific risks, macro environment)EntityRiskProfilerSkill
K1-05KARMA-1Generate narrative risk commentary for the FS-level risk assessment section of the audit fileRiskCommentarySkill
K2-01KARMA-2Cycle through each material account balance and transaction class, applying the assertion-level risk identification frameworkAssertionDrillDownSkill
K2-02KARMA-2Generate WCGW (What Could Go Wrong) statements per account and assertionWCGWGeneratorSkill
K2-03KARMA-2Classify identified risks as SCOTABD, MCOTABD, or not-MCOTABDCOTABDClassifierSkill
K2-04KARMA-2Assess inherent risk level (magnitude and likelihood) for each identified RMMInherentRiskAssessorSkill
K2-05KARMA-2Assess control risk based on PRODIGY design assessment outputsControlRiskAssessorSkill
K2-06KARMA-2Pre-populate the Atlas Risk Assessment Matrix with identified RMMs and their ratingsAtlasRiskPopulatorSkill
KP-01KARMA-PARCalculate financial ratios and trends from client FS data (YoY, QoQ, gross margin, DSO, DPO, inventory turnover, leverage)RatioComputerSkill
KP-02KARMA-PARRetrieve publicly available sector benchmarks and macroeconomic indicators for comparisonExternalBenchmarkFetcherSkill
KP-03KARMA-PARBuild predictive model of expected account balances for the audit periodBalancePredictorSkill
KP-04KARMA-PARFlag accounts where actual balances deviate materially from predicted values (unexplained differences > planning materiality)AnomalyFlagSkill
KP-05KARMA-PARDraft preliminary analytical review working paper including explanations for noted fluctuationsPARNarratorSkill

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