Why IFC Testing is Crucial for Corporate Governance and Risk Management
Why IFC Testing is Crucial for Corporate Governance and Risk Management Introduction In today's evolving business landscape, internal controls are no longer optional—they are essential. One of the most effective ways to assess and ensure these controls is through IFC Testing (Internal Financial Controls Testing). At YKG Global, we believe strong internal controls play a critical role in enhancing corporate governance and minimizing business risk. But what exactly is IFC testing? And why is it crucial for your business? What is IFC Testing? Internal Financial Controls (IFC) are the policies and procedures adopted by a company to ensure: 1. Accuracy of financial reporting 2. Compliance with applicable laws 3. Prevention of fraud 4. Operational efficiency IFC Testing involves regularly assessing these controls to ensure they are effective, updated, and aligned with business risks. It is mandatory for listed companies and many unlisted companies under the Companies Act, 2013 (Section...