Internal Financial Controls (IFC) are policies and procedures implemented by a firm to ensure that financial transactions are recorded, processed, and reported accurately. IFCs are an essential part of a company’s overall risk management framework, as they help to prevent financial fraud, errors, and misstatements.
IFC applicability refers to the companies that are required to implement these controls. The applicability of IFCs varies by country and regulatory environment. The Securities and Exchange Board of India is a government agency that (SEBI) has mandated IFCs for all listed firms, irrespective of size or sector. In addition, the Companies Act 2013 requires certain companies to implement IFCs as part of their compliance obligations.
Read More: https://www.cac.net.in/blog/internal-financial-controls-significance-for-businesses/