The Companies Act, 1956 has been replaced by the Companies Act, 2013. The new Act has cast many new reporting requirements on the statutory auditors of companies. One of these requirements relate to ‘Reporting on Internal Financial Controls’ under Section 143(3)(i) of the Companies Act, 2013 which requires the auditor to state in his report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
The section has cast onerous responsibilities on the statutory auditors because various audit principles and audit procedures for audit of financial statements as per the auditing standards issued by the Institute of Chartered Accountants of India (ICAI) do not cover situations where the auditors are required to express opinion of effectiveness of internal controls. ICAI therefore needed to come out with appropriate guidance on this section in the form of a publication that would include guidance on various aspects relating to such reporting on Internal Financial Controls.
How can Riskpro help in IFC Initiative
Riskpro helps you to address this important regulation. We provide the following services relating to Internal Controls.
IFC and COSO Training
The course provides participants the understanding of internal control concepts as per the requirement of Companies Act 2013, and provides them with practical tools and methods required for implementation framework.
Repository of Internal Controls
Inventory / Database of IFC in the form of an excel sheet that you can then customize for your company. Contact firstname.lastname@example.org for more information.
Testing of Internal Controls
Management is required to carry out internal testing of internal controls before they can certify that the Company has a strong internal control framework. We have quality test teams who will do just that. Test your controls. You don't have to pay high consulting fees. Just Rs 20-50k pm per resource hired for testing.
IFC Consulting and SOP Preparation
Riskpro has more than 15 senior audit and risk professionals who have knowledge of internal controls and SOP design. We can help companies to develop Standard Operating Procedures, process notes, policy documents with strong internal controls.