Internal Control

Internal financial controls include policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including regulatory compliance and prevention and detection of frauds and errors, thereby covering not only the controls over reliable reporting of financial statements (more commonly known as Internal Financial Controls over Financial Reporting ("IFCFR")), but also all other controls pervasive across the business. 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 were operating effectively. By placing more accountability and responsibility on the Board and Audit Committee with respect to internal financial controls, the 2013 Act attempted to align 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:

• Senior Management Accountability
• Improved controls over financial reporting process
• Improved investor confidence in entity’s operations and financial reporting process
• Promotes culture of openness and transparency within the entity
• Trickling down of accountability to operational management
• Improvements in Board, Audit Committee and senior management engagement in financial reporting and financial controls
• More accurate, reliable financial statements
• Making audits more comprehensive

At DSA, we help you identify risks while also giving you the certainty that you are making the right decisions for the future of your business. We review the Risk control matrix and suggest process and operational improvements. We also assist in implementing new processes and controls or enhancing existing processes and controls in areas such as: risk assessment, including fraud risk assessment Information quality, including Information Produced by Entity (IPE), and Monitoring and oversight of third-party service providers Precision of management review type controls; use of analytics in the context of control activities and monitoring. We also advise management on potential opportunities to leverage control framework in other operational or compliance functions. We also perform independent testing for management and report to management with a customized action plan.