What type of discrepancies are identified by exception reports?

Exception reports are specifically designed to highlight significant deviations or anomalies from expected financial performance or reporting standards. These discrepancies can encompass financial data that does not align with established norms or standards, often indicating major financial anomalies that require further investigation.

In the context of financial consolidation and close processes, identifying such issues is vital for ensuring the integrity and accuracy of financial statements. Major financial anomalies may arise from various factors, including misstatements, errors in calculation, or unexpected changes in financial performance. Exception reports serve as a critical tool for financial professionals, helping them to quickly spot and address these significant discrepancies to maintain accurate records and adhere to compliance requirements.

While minor clerical mistakes, policy violations, and version control issues may be important in other contexts, they do not represent the primary focus of exception reports, which are geared towards identifying more substantial discrepancies that can impact overall financial reporting.