How can reconciliation disputes be resolved in ICMR?

• A. By submitting them directly to external auditors
• B. Through a workflow system that escalates issues to management
• C. By ignoring minor discrepancies
• D. Through direct negotiations between subsidiaries

Answer: (B)

Resolving reconciliation disputes in ICMR effectively hinges on a structured approach that facilitates communication and accountability. Utilizing a workflow system that escalates issues to management provides a systematic process for addressing discrepancies. Such a system ensures that disputes do not stagnate at lower levels and are appropriately flagged for review by management, thereby facilitating timely resolution and avoiding any potential delays in the reconciliation process. This approach also enhances transparency and allows for better tracking of issues.

Other methods, while they may have their own merits, do not provide the same level of oversight and efficiency. For instance, submitting disputes directly to external auditors may not be prudent for resolving internal reconciliation issues, as it could create unnecessary complexity and delay in resolution. Ignoring minor discrepancies is counterproductive, as it sets a precedent for overlooking issues that could become larger problems later on. Lastly, while direct negotiations between subsidiaries can be valuable, they may lack the formal structure needed to ensure that all disputes are handled uniformly and resolved efficiently across the organization. Therefore, leveraging a workflow system that involves management promotes a more effective and standardized approach to dispute resolution.