What is Internal Financial Control ? 
                     DPNC GLOBAL
INTERNAL FINANCIAL
CONTROLS (IFC)
Better Controls. Reliable Reporting.
Stronger Governance.
IFC AUDIT  |  CONTROL TESTING  |  FINANCIAL REPORTING
DPNC GLOBAL IFC OVERVIEW
What Are Internal Financial Controls?
Policies and procedures designed to support orderly operations and reliable financial reporting.
IFC helps protect assets, reduce the risk of errors and fraud, maintain complete accounting 
records, and support timely, dependable financial information.
ORDERLY OPERATIONS ASSET SAFEGUARDING RELIABLE REPORTING
Promote consistent processes Support controls that help Improve accuracy, completeness 
and adherence to company protect company assets and and timeliness of financial 
policies. resources. information.
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DPNC GLOBAL BUSINESS BENEFITS
Why Do IFCs Matter?
A sound control environment supports confidence, accountability and better oversight.
Accountability Financial Reporting Fraud & Error Prevention
Clear ownership of controls and More reliable records and reporting Preventive and detective controls to 
responsibilities. processes. reduce exposure.
Transparency Audit Readiness Investor Confidence
Stronger documentation and visibility Organized evidence and more A stronger governance environment 
for management. structured control assessment. and reporting discipline.
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DPNC GLOBAL REGULATORY CONTEXT
IFC in the Companies Act, 2013
Key provisions commonly considered when assessing applicability and reporting responsibilities.
Section 134 Directors’ Responsibility Statement and reporting on internal financial controls, where applicable.
Section 143 Auditor reporting requirements relating to adequacy and operating effectiveness, subject to applicable 
provisions and exemptions.
Section 177 Audit Committee oversight of internal financial controls and risk management systems, where applicable.
Board Report Rules Disclosure of relevant details on adequacy of internal financial controls, as applicable.
Applicability and exemptions should be checked against current law and the company’s specific facts.
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DPNC GLOBAL CONTROL FRAMEWORK
Core Components of an IFC Framework
A structured framework helps make control assessment consistent and evidence-based.
01  Control Environment 02  Risk Assessment 03  Control Activities
Tone at the top, accountability, ethical Identify financial reporting risks and Approvals, reconciliations, segregation of 
values and defined responsibilities. evaluate their potential impact. duties and access controls.
04  Information & 05  Monitoring
Communication
Accurate data, documented processes Ongoing reviews, testing, issue tracking 
and timely communication. and remediation.
Frameworks and procedures should be selected with reference to applicable standards and organizational context.
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DPNC GLOBAL AUDIT METHODOLOGY
How an IFC Audit Works
A practical cycle from scoping and walkthroughs to testing and remediation.
01 02 03 04 05
Scope Document Test Report Remediate
Understand entities, processes, Map process flows, risks, Assess control design and Communicate gaps, root Agree action owners, target 
material accounts and controls and control owners. operating effectiveness using causes, risk implications and dates and follow-up 
reporting risks. appropriate evidence. recommendations. procedures.
Evidence-led testing and clear ownership help convert audit findings into measurable control 
improvements.
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DPNC GLOBAL CONTROL AREAS
Examples of Financial Controls
Control design should reflect the organization’s processes, risks and systems.
Revenue & Receivables Procure-to-Pay Payroll
Approval of pricing, sales cut-off, credit Vendor onboarding, purchase approvals, Employee master changes, payroll review, 
limits and collection reconciliations. three-way matching and payment access restrictions and payment 
authorization. reconciliation.
Journal Entries Cash & Bank Financial Close
Review and approval, supporting Bank reconciliations, payment controls, Closing checklists, account reconciliations 
documentation and segregation of duties. access management and cash monitoring. and review of financial statements.
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DPNC GLOBAL FINDINGS & IMPROVEMENTS
From Control Gaps to Improvement
An IFC review can help management prioritize practical actions.
COMMON AREAS TO REVIEW PRACTICAL IMPROVEMENTS
• Missing or outdated process documentation • Define control owners and responsibilities
• Inadequate segregation of duties • Standardize approval and reconciliation procedures
• Inconsistent reconciliations or approvals • Retain clear supporting evidence
• Limited evidence of control performance • Track findings with owners and due dates
• Unresolved issues and unclear ownership • Monitor recurring issues and remediation
The aim is not only compliance—it is a more reliable and accountable control environment.
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DPNC GLOBAL DPNC IFC SERVICES
How DPNC GLOBAL Can Support
IFC-related support aligned to the organization’s scope and requirements.
Documentation Testing
Process walkthroughs, risk-control matrices and control Support in evaluating control design and operating 
documentation. effectiveness.
Gap Assessment Recommendations
Identify control gaps and prioritize findings by risk and Practical improvement measures, owners and remediation 
impact. tracking.
Tailored support for stronger financial controls, governance and reporting.
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DPNC GLOBAL
BETTER CONTROLS.
RELIABLE REPORTING.
STRONGER GOVERNANCE.
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