Opco MRCs

Question 1

APA06.1

Answer 1

MRC

Review the accruals related to operating expenses to determine completeness and accuracy of the accruals.

1. Monthly
2. SOD
3. Each accrual must be validated with supporting documentation
4. Must include confirmation of completeness of accruals listing
5. Can set a threshold for recording accruals but this must be justified and a true-up must occur biannually (June and Dec)

Question 2

APA06.2

Answer 2

MRC

Review the accruals related to billable (whether disclosed as Direct costs or COGS) expense accruals

1. Monthly
2. SOD
3. Each accrual must be validated with supporting documentation
4. Must include confirmation of completeness of accruals listing
5. Recording of accruals can be done on an estimate (ie weighted average) but this must be true-ed up bi-annually (at June and Dec)