What is an example of an ICMR vital control measure?

• A. Non-standardized reporting
• B. Regular inter-company meetings
• C. Infrequent audits
• D. Haphazard record management

Answer: (B)

Regular inter-company meetings are a vital control measure in the context of ICMR (Intercompany Matching and Reconciliation). Such meetings facilitate open communication between involved parties, ensuring that each entity is informed about their obligations, discrepancies, and processes related to intercompany transactions. Through regular discussions, organizations can enhance collaboration, clarify expectations, and address any issues promptly. This consistency in communication helps in reinforcing accountability and aligns expectations across different business units, ultimately improving the accuracy of financial reporting and reconciliation processes.

In contrast, non-standardized reporting can lead to inconsistencies and difficulties in consolidating financial data. Infrequent audits may result in undetected errors or discrepancies that could have been identified earlier through frequent checks. Haphazard record management might create challenges in retrieving essential documents or data needed for reconciliation, further complicating the process. Therefore, the proactive step of conducting regular inter-company meetings stands out as an effective measure to maintain oversight and promote best practices in ICMR.