Factors Influencing Aggregation Risk and Determining the Applicable Haircut Percentage
Haircut
Haircut Percentage
Consider using a 50% haircut only when the risk factors described above are pervasive across the organization versus related to specific risks. For those engagements where there are specific risks, engagement teams should consider using a 25% haircut and varying the nature, timing, and extent of testing to address the specific risk items.