Design check
Does the control address the risk?
All internal audit & controls services
Internal Audit & Controls
Internal Controls Testing
A control on paper is not the same as a control that works. FinAura tests your key controls on real transactions across the year: samples drawn, evidence checked and exceptions recorded, for both design and operation. The result tells management, the board and your statutory auditor which controls work and which need fixing.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Internal Controls Testing Covers
Evidence that the controls operate.
Sampling
Transactions drawn across the year.
Evidence
Approvals and reviews verified.
Exceptions
Failures recorded with causes.
Remediation
Fixes agreed and retested.
Report
For management and the auditor.
How the month runs
How It Works
Select, sample, test, report.
Step 1
Select
- Key controls
- Risk matrix
- Test plan
Step 2
Sample
- Population
- Sample size
- Selection
Step 3
Test
- Evidence
- Exceptions
- Root causes
Step 4
Report
- Results
- Remediation
- Retest
Your part
What We Need From You
- 01Your control matrix, or we build one
- 02Access to systems and records
- 03Control owners' time
- 04Statutory auditor's expectations
Our part
What You Get
- Tested controls with evidence
- Exceptions with causes
- Fixes and retests
- A file your auditor can rely on
A common question
Why test controls before the statutory auditor does?
For companies where the auditor reports on internal financial controls, failures found at year-end become qualifications in the audit report.
Testing during the year finds the failures early, while there is time to fix the control and show it working.
See internal financial controls documentationResultWorks, or fixed
TestingSamples and evidence
MatrixKey controls
Who it is for
Who It Is For
Companies covered by IFC reporting
Auditor reports on controls.
Subsidiaries of listed groups
Group requirements.
Companies with past qualifications
Closing them out.
Boards and audit committees
Evidence, not assurance.
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 Controls Testing: Questions, Answered
What is IFC testing?
Testing a company's internal financial controls over financial reporting for design and operating effectiveness, usually against a risk and control matrix.
How many samples are tested?
It depends on how often the control operates; daily controls need larger samples than monthly ones. We document the basis.
Does the statutory auditor rely on your testing?
The auditor decides what to rely on; a well-documented test file usually reduces their work and questions.
What happens when a control fails?
We record the exception and cause, agree a fix with the owner and retest it later in the year.
Often Taken Together
All 12 Internal Audit & Controls services01Internal Audit & ControlsInternal Financial Controls DocumentationRisk and control matrices and process narratives for companies that need to show their controls framework.02Internal Audit & ControlsRisk Assessment and Control MatrixYour key risks listed, the control for each one defined, and gaps prioritised for fixing.03Internal Audit & ControlsInternal Controls DesignApproval limits, segregation of duties, reconciliations and reviews designed for your size, not copied from a textbook.04Accounting & FinanceAccounting & BookkeepingClean, current books every month, reviewed by a Chartered Accountant.05Systems & ControlsPolicies & DocumentationFinance and HR policies, employee handbooks, SOPs and business documentation.