The current moment calls for companies to monitor and advise good professionals. Although the ideal is that all companies have a auditing or accounting consultancy since its opening, we are experiencing a moment of urgency that can define the survival or profitability of companies that do not yet have it. There are great chances of success and continuity with the help of a financial planning, advised by a professional in the area of auditing.
This is because the professional auditing has the necessary knowledge to direct the leadership, helping in the adequacy of financial management by providing information on costs, financial ratios and tax charges, for example. Furthermore, through a process of auditing, the accountant also provides his opinion on the company's real financial health, generating indicators that facilitate planning and decision-making.
The COVID-19 pandemic has created new challenges for the auditing, which if not taken into account, may impact the quality and reliability of the auditor's work. In addition, some fieldwork in the auditing provide a critical basis for forming your opinion, such as inventory counting, property verification, and asset inspection, which are virtually unfeasible. In such cases, the scope of auditing
in normal times, this would involve several days or weeks at the customer's site, with the audit team performing the tasks. Companies then need to start planning their auditing earlier, for example, companies that do inventory counts on a continuous rather than annual basis. Companies that carry out annual inventory need to consider the following questions, so that they are prepared for their auditing: What will the inventory look like in a pandemic context? Will staff be able to maintain social distancing and adhere to COVID-19 policies for your business? If they need to use fewer people, will the inventory count take longer? If so, what will be the impact on operations?
The crisis created additional challenges for the auditing also for the preparation of financial statements, as solid information on the impact of COVID-19 is required. The pandemic has had a huge impact on organizations and leaders are faced with uncertainties regarding future prospects. In that case, the auditing has a large and complex responsibility in the reporting chain, including reliable and relevant information, since the level of uncertainties impacts the premise of management continuity. Companies will also need to disclose additional information in their reports on the impact of the pandemic and this will require more attention from the auditing, increasing its execution in scope and relevance.
During the pandemic, it is possible that changes have been made to the company's governance, processes and systems, resulting in an increased likelihood of fraud and companies already face increasing pressure to identify financial fraud. The evaluation of these changes will be part of the auditing
and have a professional auditing
accompanying the company can guarantee the success of the business.
A auditing
you may also face difficulty in obtaining evidence, as you are not on site or face additional challenges in assessing their suitability and reliability, in which case you will need to discuss the issue with the leaders. If the evidence of auditing cannot be obtained sufficiently, this will impact reports. In that case, the auditing may take longer than in previous years, requiring adjustments to supervision and review of procedures.
As with any crisis, the COVID-19 pandemic will expose flaws and inadequate methods, as well as create opportunities for people in bad faith to practice fraud. However, for the auditing, the pandemic also offers the opportunity to reinvent its role and focus on useful and efficient methods for the future. Despite the complexities, professionals in auditing
continue to focus on high quality audits in full compliance with established standards and norms.
Get in touch with TATICCA – ALLINIAL GLOBAL, which operates throughout Brazil and globally, with integrated auditing, accounting, tax, corporate finance, technology, risk advisory, business consulting and training. PFor more information, visit www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.