Implementation of Internal control over financial report (ICFR)

Internal controls over financial reporting

The Internal Control over Financial Reporting (ICFR) remains an essential part of the Chief Financial Officer (CFO)

Agenda in order to ensure that the information reported in the financial statements is accurate and does not contain any material misstatement.

At Right Idea, we assist our clients to add value to their existing systems. The entire process involves designing and testing of operational and financial controls in accordance with "Internal financial controls" framework. At Right Idea we leverage from focused approach to help organization in their ICFR implementation and maturity journey and so as to enable the organisation get maximum value from the ICFR implementation excercise.The detailed and focused approach, extends beyond just achieving regulatory compliance , internal control frameworks (COSO, SOX etc.) approach tailored to the specific requirements of organisations operating in various sectors.

Key components of ICFR

Control Environment

It starts with setting up right tone from the top level management of the organization. It includes the Company's value system, management ideology and the overall internal controls.

Risk Assessment

Identifying financial reporting risks that may impact the accuracy of financial statements. This includes making assessment of identified risks and understand the objectives of the Company alongwith the internal and external factors that may affect those objectives.

Control Activities

The specific controls and practices implemented to mitigate identified risks. Which shall include measures such as segregation of duties, approval - authorization processes, reconciliations and reviews.

Information and Communication

Ensuring relevant financial information is identified, captured, and communicated in a timely manner.

Importance of ICFR

Accuracy of Financial Reporting:To ensure that the reporting in the financial statements includes data which is reliable and accurate. Further, to ensure that there are no material mistatements in the financials.

Regulatory Compliance:To comply with the local compliance requirements, the Company are required to implement such controls system.

Operational Efficiency:Well designed internal controls helps in streamline financial reporting processes, reduce errors, and improve overall operational efficiency.

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