What methodology does ICMR follow to manage discrepancies in accounts?

• A. Outsourcing to third-party vendors
• B. Variance handling procedures
• C. Employee performance reviews
• D. Methodological training sessions

Answer: (B)

The methodology that ICMR follows to manage discrepancies in accounts focuses on variance handling procedures. This approach allows organizations to systematically identify, analyze, and resolve variances between intercompany transactions. By employing procedures specifically designed to handle discrepancies, ICMR can ensure accurate financial reporting and reconciliation across different entities within the organization.

Variance handling involves reviewing discrepancies in account balances, ensuring that any mismatches are investigated thoroughly and rectified in a timely manner. This systematic process not only helps to maintain the integrity of financial data but also facilitates better communication between intercompany partners, thereby supporting effective collaboration and resolution of any discrepancies that might arise.

This methodology is crucial for achieving compliance with financial regulations and standards while strengthening internal controls. In contrast, other options, such as outsourcing, employee performance reviews, or methodological training sessions, do not specifically address the structured approach needed to manage and resolve discrepancies within intercompany accounts effectively.