We evaluate and test internal controls and provide comfort to the management that internal controls in their companies are robust and commensurate with the size and nature of business operations and also working effectively. We also provide practical recommendations to improve and strengthen controls where there are gaps and weaknesses.

For this purpose Mahajan & Aibara has developed a proven methodology and built up:

  • A comprehensive inventory of risks by process and industry segments
  • A repository of desired controls for each risk
  • Extensive knowledge database of major issues and best practices

The methodology followed by M & A for review of Internal Controls is as follows:

  1. Identify, evaluate and prioritize key business and process risks
  2. List mitigating internal controls
  3. Map business processes and evaluate internal controls
  4. Test internal controls for effectiveness with specially designed "walk - thru" tests.
  5. Recommend best practices and improvements in internal controls, business processes & financial reporting.

We use state-of-the art data analytic tools, technologies and specially designed control rating indices for evaluating & benchmarking corporate governance processes and overall control environment in our clients.
The new Companies Act 2013 requires the Directors of listed companies in the Directors Responsibility Statement to state that they have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate & operating effectively.
The term "internal financial controls" has been defined as policies & procedures adopted by the company for ensuring the orderly & efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.