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CMA Intermediate · Corporate Accounting and Auditing · Report on Internal Financial Control over Financial Reporting

The Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by ICAI describes the audit of IFC as being carried out:

The audit of internal financial controls is performed in an integrated way with the audit of the financial statements. Evidence obtained in one audit supports conclusions in the other, so the two are planned and executed together rather than separately or only after board approval.

  1. Aseparately from the audit of financial statements
  2. Bonly if the company is listed
  3. Cin an integrated manner with the audit of financial statementsCorrect
  4. Donly after the financial statements are signed by the board

Explanation

The Guidance Note requires an integrated audit, where the IFC audit and the financial statement audit are conducted together, with evidence from one informing the other. It is not a separate or listed-only exercise.

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