The Companies Act, 2013 had introduced Section 143(3)(i) which requires the statutory auditors of companies to report on adequacy and operating effectiveness of internal financial controls system of the company.
In Sept. 2015, the AASB of ICAI had issued the Guidance Note on Audit of Internal Financial Controls over Financial Reporting to provide guidance to the members on this new reporting requirement. Now the AASB of ICAI has brought out the “Implementation Guide on Audit of Internal Financial Controls over Financial Reporting with Specific Reference to Smaller, Less Complex Companies”, containing FAQs arising from practical difficulties faced by auditors.
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