According to “The Companies Act, 2013” it is mandated that the Directors Responsibility Report must contain a paragraph on whether Internal Financial Controls are laid down in the company and are adequate and operating effectively. It is the responsibility of the Auditor of the company is required to state in his report, whether the Internal financial controls with reference to financial statements is in place and operating effectively. And the the Audit Committee, constituted by the companies prescribed, has to evaluate whether the financial controls are sufficient.
BCL India’s effecient auditors are eqipped with techniques & methodologies to keenly evaluate the effeciency of a company’s Internal Financial Control. We thoroughly inspect the policies and procedures of the company in order to examine the transactions are in line with the accepted accounting principles, and receipts and expenditures.
We first identify the applicable statutory reporting framework for the entity. Followed by that, business functions/departments/divisions that are key to the entity.
Then, we thoroughly understand the existing controls implemented by the Management to:
- a. Ensure accuracy and completeness of accounting records.
- b. Prevent and Detect frauds and errors.
- c. Safeguard the assets of the entity.
- d. Improve operational effectiveness.
We study the existing controls in order to check whether they are indeed optimum in the context of the business’s business and reporting requirements and identifying deviations from optimal standards.
To ameliorate existing controls in order to achieve the aforesaid objectives. We also run performance tests to check the controls designed are actually effective. By identifying the deviations, we advice on methods to improve compliance and implementation of controls.
0
Need more information?
Feel free to contact us, and we will be more than happy to answer all of your questions.