Internal Financial Controls Audit of financial reporting gives reasonable confidence that the financial statements of private limited companies are error-free. ICFR Audit assesses a considerably broader area of operational controls, fraud prevention measures, and financial information dependability under the Internal Financial Controls audit. The primary goal of an ICFR Audit is to identify areas for improvement and to generate suggestions and best practices for private limited firms that can be used as a standard for developing or strengthening internal control systems and improving financial statement dependability.

Internal Financial Controls Audit checks whether the company is ensuring the orderly and efficient conduct of its business, including adherence to company policies, fraud prevention and detection, accuracy and completeness of accounting records, and timely preparation of reliable financial information, as defined by Section 134 of the Companies Act 2013.

Assuring the orderly and efficient execution of its company, including adherence to management policies, asset protection, fraud and error prevention and detection, accounting record accuracy and completeness, and timely creation of trustworthy financial information.

Internal Financial Controls Audit entails the following:

• Examining the "as is" process and making recommendations for the "to be" process, taking into account best practises and risk mitigation.
• Examining the efficacy and appropriateness of the current internal controls.
• Reporting on the efficacy and appropriateness of internal controls. 

The ICFR Audit provides a solid method for ensuring that the design and execution are appropriate for the organization's size and structure. It also provides reasonable confidence on the efficacy of the Internal Financial Controls over financial reporting in operation. All listed entities are subject to the IFC. It should be noted, however, that the Firms Rules, 2014 require that all companies’ Board of Directors report to specify the adequacy of internal financial controls with respect to the financial statements.

The ICFR audit is conducted using a comprehensive Risk Control Matrix (RCM) that covers the organization's processes. If the controls haven't previously been created, the expert team will do them based on their expertise of the business process. The RCM is evaluated and amended every year to keep up with the organization's ever-changing demands and process changes. The effectiveness, ineffectiveness, and design flaws of RCM controls are tracked regularly. 

Internal Financial Controls Audit is applicable to the following individuals, according to Section 134(5)(e) of the Companies Act, 2013: Directors must state in their Director's Responsibility Statement and Board's Report whether they have established adequate and efficient IFC for the company auditors to follow. Auditors must also present an opinion on whether or not an organisation has an adequate internal financial controls system in place, as well as the effectiveness of those controls in operation. 

This explains the applicability of Internal Controls Over Financial Reporting on private limited companies.

There are few reliable firms in India which do Internal Financial Controls Audit. One of the renowned and trusted ICFR Audit services is offered by ZMAS and Associates. It was established with an intent to enhance and protect organisational value by providing risk-based and objective assurance, advice and insight. They are known for their quality standards, robust team, confidentiality and client focusses relationship.