Ø The Companies Act 2013 has introduced new reporting requirement and has cast onerous responsibilities on the statutory auditors as mentioned in Sec 143(3) and Sec 143(12) of Companies Act 2013 because reporting on internal financial control is not covered under the Standards on Auditing issued by ICAI and also because of the fact that no framework has been prescribed under the companies Act’2013 and the Rules thereunder for the evaluation of internal financial controls.
Sec 143(3) and sec 143(12) read with rule 10A of companies (audit and Auditors) Rules-
Auditor to evaluate and issue a separate report on the adequacy and operating effectiveness of Internal Financial Controls (IFC) over the financial reporting and financial statements in case of all companies(Both listed and unlisted).
Ø The Companies Act 2013 has significantly expanded the scope of internal controls to be considered by the directors of companies to cover all aspects of the operations of the company as the management has the primary responsibility of designing, implementing and maintaining appropriate internal financial controls.
Ø Under the Act, the directors statement of responsibility over establishing adequate internal financial controls and asserting operating effectiveness of such controls of the company is required only in case of listed companies as per Sec 134(5) (e).
Sec 134(5)(e) read with rule 8(5)(viii) of companies (Accounts) Rules, 2014 and schedule VI; clause 49(I)(D):-
Sec 134(5) (e) –Director Responsibility Statement to state that
· The directors in case of listed company had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
· Whereby Internal Financial controls consists of policies and procedures adopted by company for ensuring orderly and efficient conduct of its business.
Rule 8(5)(viii) of the companies (Accounts) Rules, 2014:- Board to report details on adequacy and operating effectiveness of Internal financial Controls(IFC) with reference to financial statements.
So, it has now become important to ensure keeping in view internal financial controls which has placed responsibility on directors that how directors are ensuring that proper policies and procedures are in existence and that whether they are operating effectively in terms of
· Commercial operations and
· Financial transactions,
during the year though the reporting is required at the balancesheet date, in order for the prevention and timely detection of material misstatements arising out of these operations and transactions that may have an effect on the financial statements.
Ø Role of Audit committee-Clause (vii) of Sub-section 4 of Section 177 of the Act states that every audit committee shall act in accordance with the terms of reference specified in writing by the board which shall, inter alia, include, “evaluation of internal financial controls and risk management systems”.
This has imposed lot of responsibility on directors...ReplyDelete
There are fewer audit companies about internal control weakness.ReplyDelete
Service tax auditing firms in Delhi
My rather long internet look up has at the end of the day been compensated with pleasant insight to talk about with my family and friends.internal audit firms in dubaiReplyDelete
How do I make money from playing games and earningReplyDelete
These are jancasino.com the three most popular forms of gambling, and งานออนไลน์ are explained in https://vannienailor4166blog.blogspot.com/ a very concise and concise manner. wooricasinos.info The 바카라 사이트 most common forms of gambling are:
This report provides an correct prediction of the contribution of all the segments to the expansion of the slot machine market measurement and actionable market insights on post COVID-19 influence on each phase. The changing regulatory landscape in European countrieswill facilitate the slot machine market progress in Europe over the forecast interval. This market analysis report entails detailed data on the aggressive intelligence, advertising gaps, and regional alternatives in retailer for vendors, is in a position to} help in creating efficient enterprise plans. This statistical study of the slot machine market encompasses profitable enterprise strategies deployed by vital thing} vendors. The slot machine market is fragmented and 먹튀사이트 먹튀프렌즈3 the vendors are deploying progress strategies similar to aggressive pricing strategies to compete in the market market}.ReplyDelete
Many of the video games developed by renowned casino providers will propose further rounds to improve your chances of making money. For instance, you'll be able to|you probably can} open inverted playing cards and look for matches, properly as|in addition to} take advantage of|benefit from|reap the benefits of} distinctive offers to double and triple the income for certain winning traces. Last however not least, GTA 5 1xbet Diamond Casino & Resort is final on our list.ReplyDelete
Thanks for sharing the great information Auditing Company Dubai | ERP Consultancy DubaiReplyDelete