In the corporate sector, Internal Financial Controls (IFC) is a business-wide system of procedures and personnel designed to safeguard assets, ensure legal compliance and provide reliable financial reporting. In one way or another, any business enterprise has an IFC structure – however its integrity and efficiency has always been a subject of much concern on part of the investors, business owners and management. As global financial uncertainty continues unabated, self-preservation becomes a mounting concern for businesses everywhere. Traditionally, internal financial controls has been the best means to address this concern. Indeed, in our view, there is no such thing as the ideal IFC system; yet there is always an opportunity to implement an adequate system.
Our service IFC Testing and Implementation is designed to support CEO and CFO and draws upon substantial experience of Baker Tilly Turkmen in audit and outsourcing work for corporate clients. This service is split in two stages. Stage 1 is the diagnostics of the existing IFC system; the deliverable is IFC Material Weaknesses Report presenting a detailed assessment of accounting procedures and financial controls at a company. The report will allow the client to judge adequacy of the extant IFC setup. Stage 2 is improvement of the IFC system including recommendations as to modification of the IFC procedures and personnel rearrangements. During this stage, the control procedures will be strengthened to ensure the owners’ confidence, and the management’s control over the business. If necessary, we will offer supplementary accounting policy-drafting services and outsourcing facilities . The main result of the work is strengthened and more efficient IFC system better equipped to handle corporate challenges.
On the on-going basis, IFC Testing and Implementation service is helpful for many companies as financial controls require periodic monitoring and independent assessment by a professional auditor. Also, the service is indispensable for one-off corporate situations i.e. ownership and management change, acquisition of substantial assets or companies, as well as preparation for IPOs and M&As. Practically in all such cases, there exists certain mistrust in relation to the existing financial controls – hence the need to strengthen the Accounts and Finance Departments by the staff and procedures of an independent expert such as Baker Tilly. Overall, this service is very practical, having as its chief purpose the step-change improvement of internal financial controls in the business.