Details

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.