Internal Control Over Financial Reporting (ICOFR)

Background: ‘Reporting on Internal Financial Controls’ 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.

IFC helps beyond compliances by:

• .  Help in re-designing to plug revenue leakages & cost containment opportunities
• . Helps in rationalising the number of controls across the organisation – moving to smart and automated controls
• . Foster a control conscious work culture for people behind controls
• . Through the effectiveness of ICFR, companies can reduce the risks of material misstatement, improve financial statement quality, including disclosures, and attain adequate data security.