Internal Financial Controls (IFC) are the backbone of reliable financial reporting. Under the Companies Act, 2013, directors and auditors of Indian companies are legally required to report on the adequacy and operating effectiveness of IFC over financial reporting (ICFR). A weak or poorly documented control environment can lead to qualified audit opinions, regulatory action, and loss of investor confidence.
For many growing businesses, IFC and ICFR are not just compliance checklists — they are the framework that prevents financial misstatement, fraud, and operational surprises. Done right, they strengthen financial discipline. Done poorly, they create risk that only becomes visible when it is too late.
We help companies design, implement, test, and report on IFC and ICFR using a COSO-aligned, risk-based approach — ensuring compliance with the Companies Act, supporting statutory audits, and building a control environment that scales with the business.
End-to-end design of IFC framework covering policies, controls, roles, and responsibilities.
Development of detailed RCMs mapping risks, controls, assertions, frequencies, and ownership.
Process narratives, flowcharts, and walkthroughs for all significant financial reporting processes.
Assessment of whether controls are designed adequately to prevent or detect material misstatement.
Sample-based testing of controls in operation with documented evidence and conclusions.
Identifying deficiencies, designing remediation plans, and assisting management in closure.
Review of IT General Controls across access, change, operations, and backup for financial systems.
Board, audit committee, and auditor-ready reports including management’s annual IFC certification.
Tone at the top, integrity, board oversight, authority, and organizational structure.
Identification and evaluation of risks to financial reporting objectives and materiality.
Policies, approvals, authorizations, reconciliations, and segregation of duties.
Quality of financial data, reporting systems, and internal information flow.
Ongoing evaluations, internal audits, and corrective action on control deficiencies.
Governance, policies, code of conduct, delegation of authority, and whistleblower framework.
Order to cash, revenue recognition, credit control, and collections.
Purchase requisition, vendor master, invoicing, and payments.
Stock movement, valuation, cost allocation, and physical controls.
Capitalization, depreciation, disposals, and register reconciliation.
Master data, attendance, salary processing, and statutory deductions.
Bank reconciliations, forex, investments, and borrowings.
GST, TDS, income tax, statutory filings, and compliance monitoring.
Journal entries, consolidation, disclosures, and management reporting.
Identifying significant accounts, processes, locations, and risk of material misstatement.
Process narratives, flowcharts, walkthroughs, and development of Risk & Control Matrices.
Evaluating whether controls are suitably designed to address identified risks.
Testing controls in operation through samples with documented evidence and conclusions.
Deficiency analysis, remediation plan, and IFC certification support for management and auditors.
Partner with our IFC and ICFR experts to design, test, and certify your financial controls — and turn compliance into a genuine driver of financial discipline.
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