Internal Controls is what we do to see that the things we want to happen will happen and the things we don’t want to happen won’t happen. In Summary, internal controls can help company gets where it wants to go and avoid pitfalls and surprises along the way.
Strong internal controls help organisations to
- Minimise Business interruption
- Prevent erroneous Management decisions
- Guard against Fraud, Embezzlement & Theft
- Comply with Regulatory requirements
- Prevent situations of excessive costs or deficient Revenues
- Overtly leads to avoid loss, misuse or destruction of Assets
Our overall approach in Internal controls evaluation will be as follows
In making the regulations more coherent, Companies Act 2013 has introduced the concept of Internal Financial Controls (IFC) under section 134. IFC’s operate with the overall ERM framework and is more process related. Typical areas under coverage include the following
- Treasury, Cash & Bank, Book closure
- Procure to Pay
- Payroll
- Fixed Assets
- Revenue & Receivables
- Inventory
- Taxation
- Entity Level Controls