Internal Financial Controls (IFC) reporting under Section 143(3)(i) requires reporting on:
AMarketing controls
BAdequacy of the IFC over financial reporting AND operating effectiveness of such controls
COperational efficiency only
DHR policies
Answer & Solution
Correct answer: C. Operational efficiency only
1. Section 143(3)(i) read with ICAI Guidance Note: IFC reporting covers adequacy AND operating effectiveness.
2. Scope is IFC over Financial Reporting specifically.
3. Operational/HR/marketing controls are separate management responsibilities.
_Source: ICAI BoS CA Final Paper 3, Ch 5 "Company Audit"_
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