Process narratives
How each process runs.
All internal audit & controls services
Internal Audit & Controls
Internal Financial Controls Documentation
FinAura documents your internal financial controls the way auditors and boards expect: a narrative and flowchart for each significant process, the risks to financial reporting in it, the control that addresses each risk, and who runs it how often. The documentation becomes the base for testing and for the directors' and auditor's reporting.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Internal Financial Controls Documentation Covers
Your controls, written down properly.
Flowcharts
The flow at a glance.
Risks
What could go wrong in reporting.
Controls
What stops it, who, how often.
Entity-level controls
Policies, oversight, IT.
Test plans
Ready for testing.
How the month runs
How It Works
Scope, walk through, write, approve.
Step 1
Scope
- Significant accounts
- Processes
- Locations
Step 2
Walk through
- Process owners
- Systems
- Documents
Step 3
Write
- Narratives
- Flowcharts
- Control matrix
Step 4
Approve
- Owners confirm
- Management signs off
- Test plan
Your part
What We Need From You
- 01Financial statements
- 02Process owners' time
- 03System access
- 04Existing policies and manuals
Our part
What You Get
- Narratives and flowcharts
- A risk and control matrix
- Entity-level controls documented
- A base for testing and reporting
A common question
What is a risk and control matrix?
A table that lists, for each significant process, the risks to accurate financial reporting, the control that addresses each, who performs it, how often, and how it is evidenced.
It is the single document that ties the controls framework together, and the starting point for any testing.
See internal controls testingBaseFor testing
MatrixRisks and controls
ProcessesNarratives and flows
Who it is for
Who It Is For
Companies with IFC reporting
Directors and auditors report.
Companies with no documentation
Controls only in people's heads.
Companies after a system change
Processes changed.
Companies preparing to list
Framework expected.
The rules, in plain English
What the Law Says
Companies Act, 2013
Sections 134(5) and 143(3)
Directors report on internal financial controls, and the statutory auditor reports on whether the company has adequate controls that operate effectively, with exemptions for some smaller companies.
Official source: mca.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Internal Financial Controls Documentation: Questions, Answered
Which companies need IFC documentation?
Companies whose directors and auditors report on internal financial controls under the Companies Act, which excludes some smaller companies. Others use it as good practice.
What framework do you follow?
A structure consistent with the guidance auditors in India use for internal financial controls over financial reporting.
How long does documentation take?
It depends on the number of processes and locations; we agree scope and timing first.
Do you update it each year?
Yes. Processes change, so the documentation is reviewed annually and after system changes.
Often Taken Together
All 12 Internal Audit & Controls services01Internal Audit & ControlsRisk Assessment and Control MatrixYour key risks listed, the control for each one defined, and gaps prioritised for fixing.02Internal Audit & ControlsInternal Controls TestingControls tested on real transactions, with evidence, so management and auditors know they operate.03Systems & ControlsPolicies & DocumentationFinance and HR policies, employee handbooks, SOPs and business documentation.04Accounting & FinanceAccounting & BookkeepingClean, current books every month, reviewed by a Chartered Accountant.