Internal Financial Controls (IFC) play a vital role in maintaining the integrity of financial reporting, safeguarding assets, and ensuring regulatory compliance. The service involves a comprehensive review and evaluation of a company’s internal control framework in line with the requirements under the Companies Act and applicable standards.
Key components of the service include:
Risk Identification and Control Mapping, helping to align financial processes with associated risks and corresponding control mechanisms
Design and Documentation of Controls across business cycles such as revenue, procurement, payroll, fixed assets, and financial closing
Gap Assessment between existing controls and the required internal control framework, with recommendations for remediation
Testing of Controls, including walkthroughs, sample testing, and validation of control effectiveness
Preparation of IFC Documentation, such as risk-control matrices (RCM), narratives, and process flow charts
Support in Auditor Coordination, enabling external auditors to place reliance on management’s IFC framework
Control Monitoring Mechanisms, including periodic review procedures and reporting formats for sustained compliance
Training and Awareness Workshops for finance and operational teams on control implementation and monitoring
Assistance with Automation and ERP Integration of control processes for improved efficiency and traceability
The focus is on establishing a well-defined control environment that promotes accuracy, transparency, and accountability in financial operations while meeting statutory reporting obligations.
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