The Companies Act, 1956 has been replaced by the Companies Act, 2013. The new Act has cast many new reporting requirements on the statutory auditors of companies. One of these requirements relate to ‘Reporting on Internal Financial Controls’ under Section 143(3)(i) of the Companies Act, 2013 which requires the auditor to state in his report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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Data Analysis plays a very critical part in the auditing techniques. It can drastically reduce sampling required to achieve objectives. Automated procedures are able to analysis large data sets and create meaningful patterns for use in exception identification and investigation.

Regulatory Compliance is a challenge even for the best managed and the largest organisation.

From Basel I to Basel II, the transition was more of fine tuning that was not a result of any major economic shock. However, the transition from Basel II to Basel III is a direct result of the financial crisis and the journey is likely to be painful over the next 5-7 years. Despite that Basel II is very much applicable to banks and auditors are required to audit Banks covering all aspects of Basel II.

Every organization should provide employees with an ethics policy in order to define acceptable behaviour and promote higher standards. Teaching employees about the nuances of professional ethics is essential to establishing a harmonious, productive workplace.

Organisations are experiencing increased focus on risk management.The challenge for companies is to evaluate how much risk a company can take to meet as it strives towards achieving the organisation’s objectives and delivering value

From Basel I to Basel II, the transition was more of fine tuning that was not a result of any major economic shock. However, the transition from Basel II to Basel III is a direct result of the financial crisis and the journey is likely to be painful over the next 5-7 years. Despite that Basel II is very much applicable to banks and auditors are required to audit Banks covering all aspects of Basel II.

Riskpro has partnered with leading legal and compliance management software vendors to bring you the latest technology. These solutions have powerful data architecture that enables seamless integration with existing technology and provides real time reporting capabilities.

Do you know the investee company well enough?. Has the transaction closed smoothly and is company ready to execute business strategies effectively with new funding? These are the questions many angel investors, Private equity and Venture Capital firms should be asking themselves. With valuation hitting the roof, it is even more important to preserve the capital investment and ensure that the companies are performing as per expectations.

New Companies Act 2013 effective April 1, 2014 place immense responsibilities on Directors to understand and certify about Audit, Risk, Internal Controls, Compliance, Frauds and lastly a strong Governance. You should sign off on the Directors Responsibility Statement, only after you are comfortable that the underlying systems, procedures and controls are working.