Any Company Process Risk Level Financial …

1 Any CompanyProcess Risk LevelRisk Control Matrix (RCM)HighBusiness ProcessBusiness Subprocess635368213738412131415394045678 91011121314151617 Control Ref#Design Effective/RemediateAssertionRiskControl ActivityShort DescriptionName of IT ApplicationsType of Control 2008 Control LevelEffective DateControl FrequencyControl MethodTesting Size Control TypeEst Annual Vol Control , C, R&O, V&A Tax flings incorrect. Tax calculation error resulting in exposure. Timing & permanent differences not identified, or in error. Recording, clerical error. Tax calculation error Tax legislation change not identified are incorrectly based, applied Tax legislation change incorrectly interpreted. Expense, rev, gain or loss incorrectly party expert provides advice and prepares and files Federal and State returns. , C, R&O, V&A Tax calculation error resulting in exposure. Timing & permanent differences not identified, or in error. Recording, clerical error. Tax calculation error Tax legislation change not identified are incorrectly based, applied Tax legislation change incorrectly tax completion checklist , C, R&O, V&A Tax flings incorrect.

2 Tax calculation error resulting in exposure. Timing & permanent differences not identified, or in error. Recording, clerical error. Tax calculation error Tax legislation change not identified are incorrectly based, applied Tax legislation change incorrectly interpreted. Expense, rev, gain or loss incorrectly reconciliation of tax return with accounting , V&A, P&D#VALUE!Retired 2008 In Scope-FASTTRACF inancialRtd1-Jan-08 AnnualAutomated1 Preventive/Detective INCOME TAX EXPENSE/BENEFIT: is determined in accordance with tax law, and recorded against the applicable component of net income, or Disclosure Areas and Disclosure Objectives02 Taxes 1/26/2009 5:41 PMRCM1 of 6 CountTesting HoursKey Control515 Standard Controls00 Total Controls51541262742910112522231819202122 2324252627 Control ElementControl OwnerOwner SupervisorFraud Control ScenarioControl ActivityDetailed DescriptionTest ProceduresType of TestDocument RequestDocument KeeperPopulation DefinitionMM-Other - MonitoringPerson1 Person2 Yes-CL, Yes-TDThe annual state and federal tax returns are prepared by Third Party in accordance with their annual tax engagement.

3 The return is reviewed and approved by Any Company management prior to signing and filingObtain tax returns and cover letter prepared by Third Party:1. Confirm that the return prepared by Third Party was signed by Company management prior to engagement letterPerson3CA-Reference aid, checklists (P)Person1 Person2 Yes-CL, Yes-TDOn a quarterly basis, a tax completion checklist is used and signed by the Tax Manager and the Financial that the quarterly tax completion checklist has been completed and signed by the Tax Manager and Financial ControllerExaminationQuarterly Tax Completion checklistPerson3MM-Other - MonitoringPerson1 Person2 NoOn an annual basis, the Tax Manager performs a "true up". Reconciling the tax returns as processed with the accounting the annual True up journal entry and agree to supporting documentation and ensure it is AssessmentsTax returnsPerson3CA-Audit trails (D), CA-Edit/exception checks (D), CA-Input/output checks (PD), CA-Report Validation Checks (D)Person1 Person2 NoAn off the shelf tax application package is used to complete tax calculations on an annual Taxes 1/26/2009 5:41 PMRCM2 of 624433233347282932333435 Population SourceExpected Testing Hours2007 Control LevelControl Level Change ReasonDetailed Change ReasonFinancial Reporting filings are complete, accurate and filings are complete, accurate and calculations and disclosures are accurate and 109 Tax Package software is not being used as it was found to be less effective than using Excel spreadsheets.

4 Tac computaions Taxes 1/26/2009 5:41 PMRCM3 of , C, R&O, V&A Tax calculation error resulting in exposure. Timing & permanent differences not identified, or in error. Recording, clerical error. Tax calculation error Tax legislation change not identified are incorrectly based, applied Tax legislation change incorrectly tax completion checklist #VALUE!#VALUE!Retired 2008 FinancialRtd1-Jan-08 QuarterlyIT Dependent2 Recording, clerical Manager cannot approve or book an entry to G/LFinancialKEY1-Jan-08 Structural/FormManual2 Preventive#N/A# Taxes 1/26/2009 5:41 PMRCM4 of 6CA-Reference aid, checklists (P)Person1 Person2 Yes-CL, Yes-ID, Yes-TDOn a annual basis, a tax completion checklist is used and signed by the Tax Manager and the Financial that the annual tax completion checklist has been completed and signed by the Tax Manager and Financial ControllerExaminationAnnual Tax Completion checklistPerson3CA-Input/output checks (PD)Person1 Person2 Yes-CL, Yes-TDParallel run of new FAS TRAC 109 and the prior Excel spreadsheets used for tax calculations, for the June QuarterExaminationFAST TRACP erson3CA-Organizational accountability assigned (P), CA-Segregation of duties (P)Person1 Person2 Yes-CL, Yes-ID, Yes-TDTax Manager segregated from any GL input initiation or authorization.

5 This test should be done in conjunction with testing of control # since it uses the same test documentsConfirm that the Manager Tax does not have access toComputron for data Taxes 1/26/2009 5:41 PMRCM5 of filings are complete, accurate and 109 Tax Package software is not being used at NYMEX as it was found to be less effective than using Excel spreadsheets .Ensure new tax application is implemented tax balances reflect detailed calculations.#N/A# Taxes 1/26/2009 5:41 PMRCM6 of 6