ICFR Implementation and Advisory

blog

ICFR (Internal control over financial reporting )involves design and implementation of policies, and control procedures to assess financial statement risk and provide reasonable assurance that a company prepares reliable financial statements in compliance with accounting standards. The main objectives of ICFR are; 

  • Ensuring the quality, credibility, accuracy and completeness of financial reporting.
  • Protecting organizational assets.
  • Ensuring compliance with local laws and regulations.
  • improving the effectiveness and efficiency of operations.
  • To achieve organizational mission and goals
  • The objectives of ICFR Framework include;
  • Define the adopted internal control framework.
  • Facilitate alignment of ICFR with the entity's overall risk management strategy and comply with any relevant laws and regulations.
  • Establish the responsibilities of Management towards ICFR and the implementation and maintenance of effective internal controls.
  • Detail the reporting obligations for employees and management.

ICFR Framework: 

COSO's Internal Control — Integrated Framework is  dedicated to improving organizational performance and governance through effective internal control, enterprise risk management, and fraud deterrence which is sponsored by five nonprofits organizations AAA (American Accounting Association), AICPA (American Institute of Certified Public Accountants), FEI(Financial Executives International), IIA (Institute of Internal Auditors), and IMA (Institute of Management Accountants). 

Approach 

Deliverables: 

  • Planning Documentation with timelines
  • ICFR Framework document agreed with Senior management and Internal Audit Committee
  • Document of the current state process with Process flows, internal controls, Risk and Control matrices.
  • Documentation of Gaps identified captured as per category, material/nonmaterial, operating control gaps High/Medium/ Low
  • Document of the results of effectiveness testing
  • Remediation plan and action plan
  • Updated processes based on the action plan
  • Training materials for ICFR training
  • Documentation of the ICFR periodic monitoring updates.