What does a 'Discrepancy Report' indicate in the ICMR process?

• A. A report listing all matched transactions
• B. A report highlighting unmatched transactions
• C. A report summarizing audit findings
• D. A report detailing payment schedules

Answer: (B)

In the ICMR process, a 'Discrepancy Report' is essential because it highlights unmatched transactions between intercompany entities. These discrepancies occur when the amounts or terms of transactions recorded by one entity do not align with those recorded by the counterpart. By focusing on unmatched transactions, the report serves as a tool for stakeholders to identify and investigate inconsistencies, facilitating communication and resolution between the involved parties.

Identifying these unmatched transactions is a critical part of the reconciliation process, as it allows companies to address issues promptly, improving accuracy in their financial records and ensuring compliance with regulations. This report acts as a guide for further investigation, enabling organizations to take corrective action and ultimately streamline their intercompany processes.