Internal Financial Control (IFC)

Course Content

Deep Dive into IFC

• Analyze the critical components of IFC
• COSO framework and its interpretations.

Regulatory Imperative:

• Requirement of IFC under Companies Act, 2013, 
• SEBI LODR, and industry-specific regulations, responsibilities and reporting mandates.

Framework Essentials: 

• COSO framework through a detailed breakdown of each component: control environment, risk assessment, information & communication, control activities, and monitoring.

Crafting the Approach: 

• Establish a strategic roadmap for building, implementing, and sustaining an effective IFC framework

Practical understanding of documenting IFC processes and controls through real case scenarios

Global Benchmarking & Regulatory Context

• SOX/IFC on the Global Stage
• Comparing IFC requirements globally.
• Global regulatory environments and similarities and differences
• Internal Financial Control (IFC) Vs Enterprise Risk Management (ERM), 
• Complementary roles in achieving objectives.

Control Frameworks: Financial & Operational

Financial Reporting Controls:

• ICAI guidance notes
• Ensuring robust and compliant financial reporting.
• Effective controls considering materiality, risk assessment, and reporting requirements.
• Analyze practical examples of common financial reporting controls and their implementation.

Operational Controls:

• COSO ERM and COBIT for designing operational controls
• Operational risks, considering cost-effectiveness and regulatory compliance.

Integrated Reporting & Control Assurance

Craft meaningful integrated reports on IFC effectiveness for various stakeholders:

• Senior Management
• Audit Committee
• Board of Directors

Entity Level Controls

• Relationship between ELCs and internal audit
• leveraging its potential for independent assurance and control effectiveness improvement.

Implementation Timelines & Stakeholder Impact:

• Timelines for IFC implementation, considering resource constraints and materiality.
• Scope the implementation process, addressing stakeholder needs and expectations.

Princeton Academy Resource https://princetonacademy.in/resources/