Internal Financial Control (IFC)

Under section 143(3) (1) of the Companies Act 2013 , an auditor of the company is require to state in the audit report; whether the company has an adequate internal financial controls (IFC) system and operating effectiveness of such controls .

Under section 134(5) (e) of the Companies Act 2013 , in case of listed company directors' responsibility is to state in directors' report that IFC were in place during the financial year and their comment on operating effectiveness of such controls.

We perform IFC as per guidance note issued by ICAI; we perform following activities:

  • Identification of risk
    • Understand the business
    • Determine the need for specialized skills on the team
    • Understand entity level controls
    • Identify risk of material misstatement due to fraud
    • Determination of Planning materiality [PM], tolerable error [TE]
    • Identification of significant accounts
  • Strategy and risk assessment
    • Perform walk through
    • Understand and evaluate Financial Statement Closure Process [ FSCP]
    • Design test of controls
    • Design substantive audit procedures
    • Plan general audit procedure
    • Prepare audit strategy memorandum [ASM]
  • Execution
    • Execute test of controls
    • Update test of control
    • Perform substantive audit procedure
    • Perform general audit procedure
  • Conclusion and reporting
    • Prepare summary of audit differences
    • Perform financial audit procedure
    • Prepare summary review memorandum
    • Prepare and deliver client communication

We have a team of professionals working towards excellence in the Consulting of Internal Financial Controls (IFC) . Our team comes with several years of industry experience, and comprise of a highly motivated set of specialists & industry experts. Our goal is to provide quality service in the field of IFC.
 
     
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