Perspectives on Management Review Controls: Challenges and Solutions

The CAQ and the Financial Education & Research Foundation of Financial Executives International commissioned an independent qualitative research study on internal control over financial reporting (ICFR) management review controls. This report, based on interviews conducted with key accounting personnel at a sample of public companies, followed by interviews with members of the audit engagement team, focuses on management review controls that involve a significant degree of subjective management judgment. By gathering experiences and perspectives from preparers and auditors in the field, this study aims to provide a useful window into current practices and areas of concern, as well as challenges that might constructively be addressed by preparers, auditors, and regulators.