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Internal Financial Controls

Internal Financial Controls (IFC) play a vital role in ensuring the efficient and orderly conduct of business operations.

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At Nangia & Co, we specialize in Internal Financial Controls services, helping clients document their IFC framework and independently conduct annual testing. We also review the existing IFC documentation, including the Risk Control Matrix, and suggest operational improvements. Our team assists in implementing new processes or enhancing existing ones to ensure robust financial controls.

These controls include policies and procedures designed to achieve regulatory compliance and prevent fraud and errors, encompassing both financial reporting—known as Internal Controls over Financial Reporting (ICOFR)—and operational controls across the organization.

The Companies Act, 2013 (the “2013 Act”) has imposed specific responsibilities on the Board of Directors (“Board”) towards the company’s internal financial controls and, inter alia, requires the Board to state that they have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and are operating effectively. By placing more accountability and responsibility on the Board and Audit Committee with respect to internal financial controls, the 2013 Act attempts to align the corporate governance and financial reporting standards with global best practices.

With adequate and effective internal financial controls, some of the benefits that the companies are experiencing include:

Enhanced senior management accountability.

Improved investor confidence in business operations and financial reporting.

Promoting transparent and open culture within the entity.

Bringing accountability at operational management level.

Accurate and reliable financial statements.

Improvements in Board, Audit Committee and senior management engagement in financial reporting and financial controls.

Our IFC service team consists of experienced Chartered Accountants, MBAs, and Process/IT system experts, making us a trusted partner for companies looking to strengthen their internal financial controls.

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Achieve huge success with our expertise

Audits are crucial for maintaining confidence in both your company and the financial system, especially in today’s fast-paced corporate reporting environment. This environment is marked by investor scrutiny and 24/7 oversight of both financial and non-financial information. Auditing goes beyond the legal requirement to certify annual accounts; it provides the objective judgment needed to make information reliable for decision-makers.

At Nangia & Co, our professionals bring years of experience, industry expertise, and integrity to every audit. Our approach is customized to fit the size and nature of your organization, leveraging our deep understanding of laws, regulations, and industry standards. We focus on delivering value by ensuring transparent reporting to your stakeholders. We also integrate technology into our audits, utilizing data analytics for both documentation and audit procedures.

As one of the few firms registered with the PCAOB, USA, and holding an effective Peer Review Certificate from the Institute of Chartered Accountants of India, we are well-equipped to handle audits for listed and public-interest entities.

Group Reporting

We can serve as a component team for Group audits, working according to the instructions of the Holding Company auditors. Leveraging our global experience and resources, we ensure efficient coordination, cost management, and timely delivery of your component audits. Our consistent global audit methodology and technology platform are tailored to meet local requirements when needed. By providing specialized knowledge and tools, we help your internal staff and auditors achieve maximum efficiency.

Risk Assurance Services & Internal Audit

We address risk management concerns for audit committees and senior management by continuously evaluating and improving internal processes, enhancing overall governance.

Internal Audit: We offer both outsourcing and co-sourcing services to help clients optimize their business through expert risk and control management.

Outsourcing: Complete internal audit services including planning, execution, and reporting.

Co-sourcing: Subject matter experts to complement your internal audit methodology.

Internal audits now focus on emerging risks and compliance improvements, playing a strategic role in enhancing risk management, control, and governance. We provide objective advice, using data analytics to identify trends and outliers.

Management support for Internal Financial Controls testing

Effective internal financial controls provide numerous benefits, including: enhanced senior management accountability, better financial reporting controls, more comprehensive audits, and a culture of transparency. They also improve Board and Audit Committee engagement, boost investor confidence, increase accountability at all levels, and ensure more accurate financial statements.

Financial Due Diligence

We offer comprehensive due diligence services, covering business, financial, tax, and legal aspects, to identify risks and opportunities. Our approach includes reviewing key documents, interviewing management, and analyzing financial data to determine the viability of a transaction.

We ensure you have reliable and timely information to make informed decisions by conducting detailed, coordinated investigations into financial statements, projections, key contracts, employment agreements, intellectual property, and regulatory compliance.

Stock and Fixed Assets Audits - We specialize in auditing stocks and fixed assets. We provide targeted services to manage and verify physical assets, addressing the challenges faced by companies operating across multiple locations and partners. Our goal is to maintain accurate and effective asset management.

Accounting Advisory Services

We help you assess the impact of key business decisions on your accounting and financial reporting. Our multidisciplinary team, with expertise in accounting, tax, and IT, manages everything from implementing individual accounting standards to full project planning. We offer advisory services for Ind AS/IFRS impact assessment, including transitions from IGAAP to Ind AS/IFRS/USGAAP and implementing ASC 606/IFRS 15. We also assist with accounting manuals, IPO advisory, and training. Our deep accounting knowledge ensures we identify issues, research guidance, analyze alternatives, and support sound decisions that meet audit requirements.

Business Process Outsourcing

With our expertise, we offer a range of outsourcing solutions to manage heavy workloads and provide peace of mind.

Accounting and Bookkeeping: We handle all accounting needs, from setting up bookkeeping systems to producing financial statements, budgeting, and financial advice.

Payroll Processing and Compliance: Our web-enabled payroll services ensure secure data processing and compliance with labor laws. We address payroll, tax, and statutory challenges, supported by our HR, legal, and tax experts.

Financial Reporting/Audit Support: We provide tailored audit preparation services, streamlining responses and ensuring quick auditor satisfaction.

Secretarial and Company Law Support: We help navigate complex and evolving regulations, managing compliance risks to protect your business.

Our services are designed to help you focus on your core operations while we handle the details.

Pre-IPO Support

For private companies considering an IPO, we offer comprehensive support to navigate this major transition. Our team identifies readiness gaps and facilitates coordination between lawyers, bankers, and auditors through a dedicated Project Management Office. We assist in creating and refining the prospectus and addressing exchange queries.

Impairment Analysis and Support

Ind-AS 109: We analyze and compute expected credit losses, evaluate macroeconomic impacts, and adjust provision matrices.

Ind-AS 36: We assess the effects of economic conditions on cash-generating units and financial assets, prepare accounting memos, and ensure accurate financial statement disclosures.

Contract Review and Analysis

Contract Review and Analysis:

Our experts review and analyze contracts—such as Revenue, Leases, and Financial Instruments—by clarifying contract facts, assessing feasibility, and forecasting risks. We provide summaries and documentation on performance obligations, warranties, lease components, and classifications.