LO 40.1: Identify the most common issues that result in data errors.

LO 40.1: Identify the most common issues that result in data errors.
The most common data issues that increase risk for an organization are as follows: Data entry errors. Missing data. Duplicate records.
Inconsistent data. Nonstandard formats. Complex data transformations. Failed identity management processes. Undocumented, incorrect, or misleading metadata (description of content and context
of data files).
>From a financial perspective, such data errors (accidental or not) may lead to inconsistent reporting, incorrect product pricing, and failures in trade settlement.
Examples of risks arising out of data errors include: Fraudulent payroll overpayments to fictitious employees or those who are no longer
Underbilling for services rendered. Underestimating insurance risk due to missing and inaccurate values (e.g., insured
employed by the firm.
value).
A c c e p t a b l e D a t a

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