Category: SOX

Sox Management Review Controls

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The Sarbanes-Oxley Act of 2002 (SOX) designates management review controls (MRCs) as one of the required internal controls. MRCs are the reviews of key financial information conducted by a company’s management to assess its reasonableness and accuracy. They are a key aspect of a public company’s internal control over financial reporting (ICFR).  Examples of these SOX management reviews include:      Review of reconciliations     Review of journal entries     Trigger events     The work supporting an estimate     Budget to actual variances  Management review controls are more complex than other controls since they require the examination of combined results as opposed to individual transactions. They involve comparisons of recorded amounts with associated projections based on…

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