Internal Financial Control: Precision in Reporting
Under the Companies Act 2013, the Board of Directors is personally responsible for the adequacy of financial controls. At Diwakar and Associates, we provide the technical testing and documentation required to validate those controls for management and statutory auditors alike.
Applicability Reporting Limits
Under Section 143(3)(i), auditors must report on IFC for companies exceeding these thresholds:
| Requirement | Listed Companies | Private/Unlisted Public |
|---|---|---|
| Board reporting | Mandatory (Adequacy & Effectiveness) | Mandatory (Adequacy) |
| Auditor Reporting | Always Mandatory | Mandatory if Turnover > ₹50 Cr or Borrowings > ₹25 Cr |
Why, When & Where is it done?
Why
To ensure financial statements are reliable, free from material errors, and to satisfy the Directors' Responsibility Statement.
When
Conducted annually as part of the year-end financial finalization or during interim audit phases.
Where
Focused strictly on the Finance, Accounts, and IT departments (ERP systems) that generate the financial data.
How we provide this service at Diwakar and Associates
We bridge the gap between accounting and technology to ensure your financial reporting is seamless:
1
RACM Mapping
We create a Risk Control Matrix linking every financial risk (e.g., unauthorized payments) to a specific, verifiable control.
2
Walkthrough Testing
We trace a transaction from its origin (Order) to its final entry (Cash/Ledger) to identify potential points of failure.
3
Operating Effectiveness (ToE)
We test data samples throughout the year to prove that controls worked consistently, not just at year-end.
4
Remediation & Certification
We identify "Control Deficiencies," help you fix them, and provide a formal report for Board certification.
The Impact
We provide the technical testing and documentation required to validate those controls for management and statutory auditors alike.
Our Commitment to You
Accuracy is the cornerstone of our practice. At Diwakar and Associates, we commit to delivering meticulous IFC audits that are 100% compliant with the latest MCA regulations. We promise a foolproof audit trail that satisfies statutory auditors and gives your Board absolute certainty.
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