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

Under the ICAI Guidance Note on Audit of Internal Financial Controls over Financial Reporting, the auditor's primary objective in an audit of IFCoFR is to express an opinion on:

The auditor's objective is to opine on whether the company has adequate internal financial controls over financial reporting and whether they operated effectively as at the reporting date. The scope is financial reporting controls, not operational efficiency or every transaction.

  1. AThe adequacy of internal controls over operational efficiency of all departments
  2. BThe company's internal financial controls over financial reporting, including their design and operating effectiveness as at the reporting dateCorrect
  3. CThe accuracy of every transaction recorded during the year
  4. DThe effectiveness of the internal audit function's work plan

Explanation

The Guidance Note requires the auditor to express an opinion on whether the company has adequate IFC over financial reporting and whether such controls operated effectively as at the balance sheet date. It is not an opinion on operational controls or on every transaction. Testing of all transactions is not the objective.

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