CS Professional · Internal and Forensic Audit · Internal Controls
Bharat Polymers Ltd (listed) wants to align its internal control manual with the statutory description of 'internal financial controls' in the explanation to section 134(5)(e). Which item is NOT part of that description?
Maximisation of market share is not part of the statutory description of internal financial controls. The definition covers orderly conduct of business, adherence to policies, asset safeguarding, fraud and error prevention and detection, accurate records and timely reliable financial information.
- ASafeguarding of the company's assets
- BPrevention and detection of frauds and errors
- CMaximisation of the company's market share in each product segmentCorrect
- DTimely preparation of reliable financial information
Explanation
The explanation covers orderly and efficient conduct of business, adherence to company policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. Market share maximisation is a strategic goal and is not listed.
Did you get it right without looking?
One question tells you little. A timed set on Internal Controls shows your real accuracy, how long you take and where you lose marks.
More Internal Controls questions
- Under section 134(5), the Directors' Responsibility Statement of Sagar Pharma Ltd (listed) is being reviewed by its internal auditor. Which …
- Which statement best describes the difference between preventive and detective controls in an internal audit setting at Narmada Foods Ltd?
- Under section 177 of the Companies Act, 2013, which of the following is expressly included in the terms of reference of the Audit Committee …
- At Kaveri Pharma Ltd, the CFO reviews the monthly exception reports and supervisors check daily stock reconciliations as part of routine wor…
- While testing controls at Ganga Retail Ltd, an internal auditor finds that bank reconciliations are prepared monthly but are not reviewed by…
- Under the Guidance Note on Audit of Internal Financial Controls over Financial Reporting, the statutory auditor of Kaveri Textiles Ltd. is p…