SCA has extensive experience in the field of Risk Advisory and Risk Governance which includes a wide range of services in Management audits and Management Assurances. Well trained Partners and professionals make Risk advisory services one of the most successful deliveries.
The services offering under Risk advisory includes following services:
1. Internal Audit :
SCA has extensive experience in offering services for Internal Audit and follow a risk-based approach. This is one of the most prolific areas of GMA.
- Assists in the development and support of a robust and integrated framework for governance risk and compliance
- Adopts a well-tested risk-based approach and in-depth knowledge of all relevant business processes. Review of compliance to company policies and focus on fraud and process risk
- Performs Stock audits on behalf of Management to give comfort over physical stock in the premises. It is important from the perspective of having vigil over the quantity and quality of raw materials remaining in stores as more than 70% of product cost involves material cost.
Our approach while performing Internal audit and Business process reviews
2. Model Business process:
With the in depth understanding of process and industry, we leverage on our enrich experience in developing Model Business process (SOPs).
- With the ever-increasing governance requirements, and importance to the process controls, it is important to document their processes for future growth and sustainability
- We help companies in documenting the “Model Business Process” with enrich experience of industry specific team working on the assignment
We envisage for ‘Partner in implementation’ rather focusing on mere documentation
- We propose a customized solution after process diagnostic and dip stick reviews depending on the requirement of Management.
- We support entity to document the Standard Operating Procedures and Policies & procedures to ensure process is well defined and organization is process dependent. Standard practices are well documented and are inherent part of the process to achieve the business objectives.
- Training are performed for all concerned stakeholders/ process owners/ Head of departments. Implementation review of designed process is performed after agreed span of time.
- Defining Model business process helps entity to standardized and efficient process, compliance to operating policies and business control, clearly defined roles/ responsibilities/ accountability, process dependent decision making culture, organization is output focused, linked and measurable KPIs
3. SOX and IFC:
SCA Partners $ professionals has wide exposure & credentials of SOX and IFC compliances and have been successfully helping clients to set up strong internal controls.
- Assisting Corporates to implement successful SOX and IFC structure for their business process after detailed risk assessment.
- Assists in testing and updation of already documented controls and process.Supports entity in closure with the auditors and smooth SOX/ IFC audits.
- 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. Overall, this service is very practical, having as its chief purpose the step-change improvement of internal financial controls in the business.
- Further, 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.
Our service IFC Testing and Implementation is designed to support CEO and CFO 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.
4. Diagnostic reviews:
An in-depth one time review of transactions with an objective of improving business operations, identify revenue leakages, profitability and cost saving opportunities.
- Leveraging our process understanding and value deliveries to clients; we have developed a delivery purely based on cost saving opportunities, revenue leakages, process efficiencies.
- This activity is performed on key areas mutually agreed with management and helps for the said objectives.
5. Concurrent audits:
Concurrent Audits are a systematic and timely examination of the financial transactions on a regular basis to ensure accuracy, authenticity and compliance with procedures and guidelines. Concurrent audits do not emphasis test checking but substantial checking of a transaction. The main objective is to detect arithmetical errors and manipulation deliberately made (if any). Our endeavour is to conduct concurrent audits as per the scope of the entity and it usually includes
- A Systems review to understand the existing system and procedures, to enable us to suggest areas for system \ improvement and strengthening of controls
- Bringing to light violations of procedures (if any)
- Ascertaining whether sanctions for advances and expenditures is taken from a competent authority
- Ensuring compliance with the procedures and policies
- Review of the Funds Flow Statement and analysis of the utilization of the funds and various resources that were available
- Detection and arresting of leakages of income, (if any)
- Reporting inefficiencies at any operational level
6. Pre – Payment audits:
SCA follows and performs Pre-Payment review basis 3 objectives accuracy, reasonableness and appropriateness
- Pre audit of project related transactions, to proactively ensure validity and effectiveness of key controls. Assist in process compliance reviews.
- Provide project owners real time objective feedback to assist proactive decision making to help mitigate: cost escalation, schedule extension, scope adjustments, and project risks.