Internal Control on Financial Reporting

January 2016

Vijay Totapally FCA Partner

Bhaskara Prasad & Associates

 Background Understanding what is Internal Controls on Financial

Reporting Benefits of Internal Controls on Financial Reporting Internal Control means... Internal Control Limitations Management Responsibilities Management Evaluation process Key Definitions Documentation

Vijay Totapally FCA

India Clause (i) of Sub-section 3 of Section 143 of the

Companies Act, 2013 Clause (e) of Sub-section 5 of Section 134 Rule 8(5)(viii) of the Companies (Accounts) Rules,

2014 Global (US)

In addition to certifying the company's financial statements (Section 302), management must also report on the company's internal control over financial reporting (Section 404)

Vijay Totapally FCA

A process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Vijay Totapally FCA

includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements

Vijay Totapally FCA

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