Internal financial control (IFC) is a much wider concept than internal control over financial reporting (ICFR). ICFR audit is an audit where we examine the financial statements of the business and share it with its user’s i.e. employee’s, stockholder’s, shareholder’s, government, competitors, customers, lenders, investors etc. whereas IFC audit is an audit where we examine the functions & management of the business and share the final result with the company.

ICFR audit covers all the elements of financial reporting which includes Profit & loss account, balance sheet etc. whereas internal finance control (IFC) examine the controls which ensures efficiency in business functions, compliance of policies, maintenance of records and safeguarding of assets. IFC is applicable on listed companies, unlisted companies, small companies and one person companies.