What is a critical approach to resolving discrepancies in ICMR?

• A. Accepting all discrepancies
• B. Manual adjustments within the system
• C. Outsourcing the reconciliation process
• D. Ignoring smaller discrepancies

Answer: (B)

Manual adjustments within the system are a critical approach to resolving discrepancies in Intercompany Matching and Reconciliation (ICMR) because they allow organizations to maintain control and accuracy in their financial reporting. By making manual adjustments, teams can directly address and rectify any mismatches that may occur between intercompany accounts, ensuring that financial records accurately reflect transactions.

This method helps in identifying specific issues, understanding the root causes of discrepancies, and documenting adjustments for audit trails. It emphasizes the importance of internal oversight and control in financial processes, enabling companies to reconcile accounts effectively and maintain compliance with accounting standards.

Manual adjustments also allow for flexibility in addressing various types of discrepancies that automated systems may not fully capture. This approach fosters collaboration among different departments and entities involved in intercompany transactions, leading to a more comprehensive understanding of the financial relationships and ensuring that all parties agree on the reconciled figures.