Page 62 - MA - May 2017

COMPANIES ACT

 Managerial activities will have to regulations. there will be market reaction to
take into consideration IFC and  Managerial actions will be financial information, which will
ER requirements (which will be reflected in the financial be reflected in market value of
implemented by the committees statements. the firm.
set up by the corporate board).  Auditors will audit financial The above relationship is shown
 The Board of Directors will have statements as well as IFC and ER in Diagram 1.
an overall responsibility to ensure Systems.
that managers follow IFC and ER  Based on audited information,

Diagram 1
Organisational links among ERM, IFC, FS, Audit Report & MV

Board of Auditors
Directors

ER Regulating FIC
Guidelines Guidelines

IFC Report
Managerial Auditor Market
Actions Financial Audit Reports Value
Reports

Conclusion Contemporary Auditing.5th
lead to some policy decisions by Edition, p.81, Tata McGraw
A snap shot of various regulatory the regulators, a good empirical Hill.
provisions in respect of IFC has been research will be highly useful to all 4. Jaggi, Bikki and L.K.
given above. The ICAI regulation the stakeholders of the company in Krishna Muoorth y
comes into effect from 1st April, India. (2015). Enterprise Risk
2015. Therefore, corporate practices Management: Its Importance
in this context will pin point to what References and Implementation, Indian
extent and how these guidelines 1. A Guide To The Sarbanese Oxley Accounting Review, June.
have been implemented by the Act. 2002 (http:/www.soxlaw. 5. Pandab, S.K. (2013).
listed companies in India. This can com) Companies Act, 2013 with
be compared with international 2. Banerjee, Bhabatosh (2016). Rules. Lawpoint Publications.
developments. Nevertheless, it Enterprise Risk Management. 6. www.icai.org
opens up scope for further research, The Management Accountant, 7. www.kpmg.com/in
both conceptual and empirical. March.
While conceptual research may 3. Gupta, Kamal (1989). bhabatosh.commerce@gmail.com

62 The Management Accountant l May 2017 www.icmai.in