GMA has extensive experience in offering services for Internal Audit, Risk Management and Corporate Governance which renders a wide range of services in Operational Consulting. Management Audit and Management Assurance is an integral part of this service. The management consulting practice comprises of Partners, Senior Manager, Associates and other qualified and experienced personnel.
The services offered include
- Systems and Internal Control Review: A thorough review of prevailing systems, procedures and internal controls with the objective of ensuring and enhancing their operating effectiveness.
- Accounts Manual: to act as a guideline on Accounting Policies, Procedures and Systems adopted by a Company, Designing Chart of Accounts etc
- Systems Manual: Drafting of systems design specifying procedures to be followed in the day to day activities in various functional areas such as Sales, Purchase etc. including stage wise documentation to be prepared.
- Operational Audit: An in-depth audit of transactions with the purpose of improving business operations, performance and profitability
- Management Audit: Appraisal of key Management functions like objectives, planning, organizing and control
- Organizational Structure: Review of structure, design, job profile and recruitment
- Management Information System:
- Development and design
- Budgeting and Costing System
- Pre-feasibility studies
- Financial Analysis
- Project Appraisal and Feasibility Studies
Iternal Financial Controls (IFC)
In the corporate sector, Internal Financial Controls (IFC) is a business-wide system of procedures and personnel designed to safeguard assets, ensure legal compliance and provide reliable financial reporting. In one way or another, any business enterprise has an IFC structure – however its integrity and efficiency has always been a subject of much concern on part of the investors, business owners and management.
Our service IFC Testing and Implementation is designed to support CEO and CFO in audit and outsourcing work for corporate clients. This service is split in two stages. Stage 1 is the diagnostics of the existing IFC system; the deliverable is IFC Material Weaknesses Report presenting a detailed assessment of accounting procedures and financial controls at a company. The report will allow the client to judge adequacy of the extant IFC setup. Stage 2 is improvement of the IFC system including recommendations as to modification of the IFC procedures and personnel rearrangements. During this stage, the control procedures will be strengthened to ensure the owners’ confidence, and the management’s control over the business. If necessary, we will offer supplementary accounting policy-drafting services and outsourcing facilities. The main result of the work is strengthened and more efficient IFC system better equipped to handle corporate challenges.
On the on-going basis, IFC Testing and Implementation service is helpful for many companies as financial controls require periodic monitoring and independent assessment by a professional auditor. Overall, this service is very practical, having as its chief purpose the step-change improvement of internal financial controls in the business.
Further, The Companies Act, 1956 has been replaced by the Companies Act, 2013. The new Act has cast many new reporting requirements on the statutory auditors of companies. One of these requirements relate to ‘Reporting on Internal Financial Controls’ under Section 143(3)(i) of the Companies Act, 2013 which requires the auditor to state in his report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
The section has cast onerous responsibilities on the statutory auditors because various audit principles and audit procedures for audit of financial statements as per the auditing standards issued by the Institute of Chartered Accountants of India (ICAI) do not cover situations where the auditors are required to express opinion of effectiveness of internal controls. ICAI therefore needed to come out with appropriate guidance on this section in the form of a publication that would include guidance on various aspects relating to such reporting on Internal Financial Controls.
GMA’s Role in IFC Initiative
GMA helps you to address this important regulation. We provide
- Internal Control Testing Support
- Inventory / Database of IFC in the form of an excel sheet that you can then customise for your company
- Guidance on strengthening internal controls
Outsourcing of Internal Audit
GMA has a team of experienced internal auditors in major cities across India. We can take up internal audit and internal controls review assignments on “Support model", wherein you pay for our services a few days a month, as if you employed us for just those days a month. We also offer “loan staffing” agreements wherein a dedicated team works with you as a part of your team.