Review Requirements:
- Budget to actual comparison
- Current to prior period comparison
- Performance indicators
- Follow-up on unexpected results or unusual items
Reviews as a Control Activity
Management review of reports, statements, reconciliations and other information is an important for monitoring consistency and reasonableness. Reviews should be documented, and the resolution of items should be noted for follow-up.
Reviews to Track Performance
Performance reviews help detect problems. Management should compare information about current performance to budgets, forecasts, prior periods or other benchmarks to measure the extent to which goals and objectives are being achieved, and to identify unexpected results or unusual conditions that require follow-up.
