internal financial control

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Abhimanyu singh (Querist)

14 December 2016 is there any applicability in private company of internal financial control report ? what is the criteria ? and in which company it is requires? or it who can able to give internal financial control report ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 December 2016 Yes, Internal financial controls rules are applicable to private companies also.
Rule 8(5)(viii) of the Companies (Accounts) Rules, 2014 requires the Board of Directors’ report of all companies to state the details in respect of adequacy of internal financial controls with reference to the “financial statements”. Also, section 143(3) applies to the statutory auditors of all the companies. Hence, it appears that the auditors of even unlisted companies are required to report on the adequacy and operating effectiveness of the internal financial controls over financial reporting.

Abhimanyu singh

Abhimanyu singh (Querist)

14 December 2016 thankyou so much can you tell me that it is applicable from financial year 15-16 ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 December 2016 Yes. it is applicable for FY-2015-16

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