Management Review Controls (ICFR)

December 2019

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With the constantly evolving complexity of business operations, regulatory and economic environments, companies are increasingly dependent on management’s use of sound professional judgment within Management Review Controls (MRCs).

MRCs include reviews of calculations, valuations, development of assumptions, reconciliations, analyses prepared by others (including third parties), or reviews of financial results against budgets and/or prior periods. MRCs can vary in their nature from controls with a simple review element to complex controls with significant judgment, management assumptions, and numerous control activities (we refer to these controls as multi-layered MRCs).

Management Review Controls are critical to an effective control environment. Designing and performing these controls effectively requires sound professional judgment. A well-designed MRC considers the Fundamental Elements of MRCs, effects of IT systems, and reports, spreadsheets, & queries used in the review.

 

Fundamental Elements Of Management Review Controls

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