By now most companies would be aware of what IFCs are (Internal Financial Controls /Internal Controls over Financial Reporting). The last year has been full of activity, starting with the Finance heads getting along with the new (but not so new) concept and getting it implemented, the Management certifying the operating effectiveness of the IFCs, and eventually the Auditors auditing and giving their opinion.
The new financial year has begun and the audits will soon start again.
So time to gear-up, gear-up timely!
Category 1: Companies who got their IFC documentation in place, got the management testing done and obtained a favorable opinion from the auditors last year.
Category 2: Companies who got their IFC documentation in place, got the management testing done and but got a disclaimer of opinion or qualification from the auditors last year.
Category 3: IFC documentation not yet started, managed to get a liberal view with the auditors giving the plea of last year being the First year. (yes, such companies are there and it may not be an understatement if I say they are in majority)
For them we would just like to say:
“The best preparation for tomorrow is doing your best today.”- H. Jackson Brown, Jr.
Take the lead and get Compliant!
IFCs should not be taken merely as a compliance. They should be taken as an opportunity to look within the organisation, introspect, assign responsibilities review the risks and be confident with a better control environment.
Kratika Agarwal, Partner
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