What is significance in SAP FIN-CGV-MIC - Management of Internal Controls?

SAP Term: significance

• Component: FIN-CGV-MIC

• Component Name: Management of Internal Controls

• Description: Attribute of a control that specifies whether the control is a key control or a standard control.

Smart SAP Assistant

• Key Concepts: 
  Significance in the context of FIN-CGV-MIC Management of Internal Controls is the degree to which a control is important to the organization. It is used to determine the level of attention and resources that should be devoted to a particular control. 
  
  How to use it: 
  Significance is typically determined by assessing the potential impact of a control failure on the organization. This assessment should take into account both the likelihood of a control failure and the potential consequences of such a failure. The higher the potential impact, the higher the significance assigned to the control. 
  
  Tips & Tricks: 
  When assessing significance, it is important to consider both quantitative and qualitative factors. Quantitative factors include financial losses, reputational damage, and legal liabilities. Qualitative factors include customer satisfaction, employee morale, and organizational reputation. 
  
  Related Information: 
  Significance is an important factor in determining the level of monitoring and testing that should be performed on a particular control. It is also used to determine the frequency with which controls should be reviewed and updated. Additionally, significance can be used to prioritize controls when resources are limited.