The 2013 Companies Act marks a major step towards raising the bar on corporate governance in India. The Companies Act has re-emphasised the importance of a robust internal controls environment by introducing the term ‘Internal Financial Controls’, and by casting specific responsibilities on the Board, Audit committee, Management as well as the Auditors.

KPMG’s Internal Financial Controls Framework

KPMG's Internal Financial Controls Framework (IFC) has been developed keeping in mind the requirements of the Companies Act, 2013. This framework focuses on financial controls’ effectiveness through a continuous cycle of self-assessment and independent credence based on various internal financial control elements.

KPMG's Internal Financial Controls Framework considers a holistic approach by focusing on two levels i.e.

• Entity level
• Process level

The framework and approach is in alignment with globally accepted guidelines such as COSO 2013.

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^{Source: KPMG's brochure for Internal Financial Controls Framework - 2015}

How KPMG can help you

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Potential benefits that can be derived from IFC

• Enhance governance framework 
• Defines clear accountability and transparency 
• Controls automation 
• Reduction in number of surprises 
• Streamline/standardise controls 
• Opportunity to plug leakages/potential frauds

Why is KPMG suited to be your chosen team to work with

Demonstrated expertise: KPMG has significant experience in carrying out IFC engagements for clients across diversified businesses. We have a team of professionals with the right skills and experience to cater to your requirements.

Knowledge expert: We have extensive knowledge of the typical nature of exceptions noted during audit by auditors which can aid us to identify red flags for remediation at an early stage.

Ready tools and templates to hit the ground running: KPMG’s ready process frameworks and methodologies help reduce design and implementation lead time to shorten the implementation life cycle. We can help develop a repository of controls and tests which can be easily relied upon. KPMG’s member firms’ industry specific repositories can assist your organisation in strengthening their internal financial control environment.

Integrated services proposition: KPMG is positioned in a way to provide a wide span of services that are smoothly integrated: Organisation, Process, risks and controls (including fraud and Information Technology aspects). Thus we provide the client with thorough implementation assistance.

For more information about IFC, please contact on the email below in-fmkpmgindiaifc@kpmg.com.