Search results
Mar 30, 2023 · Discover the essentials of Internal Financial Controls (IFC) under the Companies Act 2013 effective from 01/04/2023 onwards. Get insights on limits and thresholds for applicability.
Mar 7, 2023 · Private companies with turnover less than INR 50 Crore and aggregate borrowings (FIs, Banks & Body Corporate) less than INR 25 Crore at any point of time during the financial year. The auditor is not required to report about the IFCs with reference to financial statements in place.
Under Section 143(3)(i) of the Companies Act, 2013 (2013 Act), an auditor of a company is required to state in his/her audit report whether the company has an adequate internal financial controls (IFC) system in place and the operating effectiveness of such controls.
Aug 6, 2021 · In this article, we will have insight over the applicable provisions of certain most common sections (yet vital) of the Companies Act 2013, which we come through day in and day out during Audit and Assurance assignments. CARO 2020. CARO 2020 is applicable to all companies including foreign companies w.e.f 1st April 2021.
Aug 25, 2015 · I Scope of reporting on internal financial controls under clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 3 II Applicability of reporting in the case of unlisted companies 6 III Criteria for internal financial controls over financial reporting 6 IV Specified date for reporting on the adequacy and operating
Dec 12, 2023 · Hence, it appears that the auditors of even unlisted companies are required to report on the adequacy and operating effectiveness of the internal financial controls over financial reporting. The said provision is applicable to all Companies whether listed or unlisted except those companies which are exempted by the MCA notification dated 13th ...
Feb 18, 2022 · The application of IFC and ICFR compliances is important for the following reasons: Enhanced Transparency: The reporting associated with the IFC and ICFR enhances the transparency manifold. Checks and balances have been placed at each level, from the audit committee to the director’s report and then the auditor’s report.
IFC is applicable solely to all listed entities. It may, however be noted Companies (Accounts) Rules, 2014 needs the Board of Directors’ report of all companies to state the details in respect of adequacy of internal financial controls with regard to the “financial statements”.
One of these requirements is given under the Section 143(3)(i) of the Act requiring the statutory auditor to state in his audit report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Initially, there were concerns over the IFC’s applicability, coverage of business operations, coverage of controls and subsidiaries and managing stakeholder expectations. Responses to these concerns have evolved over time and there is significant interest seen in the industry towards the approach and strategies adopted in meeting the requirements.
