Internal Control over Financial Reporting (ICFR)

In the realm of ICFR we adopt a tried and tested methodology which starts with:

• Applying Risk -Based Scoping
• Mapping Financial Assertions against the Scoped items
• Mapping key Accounts to Assertions and Processes
• Assessing Controls
• Evaluating the Internal Controls Environment
• Developing framework to provide assurance on ICFR

In Stage1 of our detailed approach, we:

• Obtain Financial Statement Elements (FSE) and agree Quantitative Materially Thresholds
• Discuss with relevant Finance Managers and Define Qualitative rankings
• Compile and Aggregate a combined Overall Rating
• Rate Financial Statements line Items
• Discuss with Management to confirm addition / deletions

In Stage 2, we use the overall Account Rank and Risk Factor ratings to identify the assertions, which are classified into Existence, Occurrence, Valuation or Measurement, Completeness, Rights & Obligations and Presentation & Disclosure.

In Stage 3, the key and significant accounts identified as part of Stage 1 are mapped against Assertions & Controls. Discussions and Meetings with individual Entity Finance Managers are conducted to document and map the controls and processes against the Risk Assertions. Weaknesses in Design of Control and Operational Efficiency are identified and communicated to the Management with recommendations to improve controls / processes.