Corporate governance in the COVID-19 pandemic: current practices and potential improvement

PurposeThe purpose of this paper is to analyse the effect of the COVID-19 pandemic on corporate governance and internal control in general. In addition, this paper attempts to develop a new corporate governance model that flexibly addresses conditions like those brought into the business environment by COVID-19. Design/methodology/approachThirteen semi-structured interviews were conducted with chairpersons, CEOs and directors from companies listed on the FTSE 350. FindingsThis study suggests a corporate governance model, which we call Eunomia, which we believe will help businesses to navigate the unusual conditions resulting from COVID-19 and similar types of crises that lead to major disruption for businesses and society. The model includes five pillars that support governance, namely, flexibility, IT infrastructure, risk management, internal control and policies and procedures. Practical implicationsImplications for practice and policymakers. Based on the research outcomes, the authors suggest that the board of directors establishes policies that ensure supply diversity and that businesses do not rely on a single or limited number of suppliers, thereby making themselves vulnerable to supply chain disruption with those suppliers. Originality/valueThis paper presents an original contribution to the accounting literature relating to corporate governance and internal control systems, specifically in terms of how businesses can optimally operate under uncontrollable conditions resulting from pandemics, and similar situations.

Cybercrime and its association in the commission of financial fraud in COVID-19 pandemic

COVID-19 affected millions of people and organizations from all sectors and social classes, contributing to the proliferation of social, economic, technological and financial risks, increasing cybercrime and financial fraud in the business field. These illicit activities took leadership due to the adoption of digital media that the organizations used to be able to continue their operations. Therefore, the goal of this research was to evaluate the perception of cybercrime and financial fraud in Ecuadorian public and private sector organizations in COVID-19. For this, a descriptive study was carried out, under a cross-sectional quantitative approach, using the chi-square statistic as a means of association of the variables. The results showed that the manipulation of economic data and fraud was the main cybercrime incurred during the pandemic, with financial statement fraud being the largest scheme executed by the perpetrators. The internal control and internal audit functions were identified as the main lines of prevention and assurance against these criminal activities. © 2023, Universidad del Zulia. All rights reserved.

Internal Control System on Using Digital Banking Applications and Services in Jordanian Banks During the Corona Virus Pandemic

A study has aimed at identifying the extent of effectiveness and ability of internal control to supervise digital banking applications and services which have been highly used in Jordanian banks due to the Corona. A descriptive analytical approach has been used due to the nature of the study;a questionnaire has been designed as a tool of data collection and distributed to study sample, composed of internal auditors, chief accountants, and financial managers in Jordanian commercial and Islamic banks. 96 questionnaires have been distributed. Statistical package for the social sciences (SPSS). The study has found that digital banking applications and services used by Jordanian bank have contributed to the achievement of internal control system's goals. In addition, it has indicated that digital banking applications and systems, used by Jordanian banks, are characterized by information properties which make internal control system more effective and efficient during the Corona pandemic. Moreover, the study has shown that public or regulatory administrative control procedures have achieved the effectiveness of digital banking applications and services used by Jordanian banks in the light of the Corona pandemic;and the procedures and systems of data security and safety have highly affected the effectiveness of digital banking applications. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

The Value of Internal Control during a Crisis: Evidence from Enterprise Resilience

Internal control is an important internal governance mechanism of enterprises and plays an important role in preventing and controlling corporate risks. This paper utilizes COVID-19 shocks and uses data from listed companies in China for 2019–2021 in order to study the impact of internal control on enterprise resilience and its functioning mechanism. The findings show that internal control significantly improves enterprise resilience during a crisis. By using firm characteristic quantile regressions, it is found that under a crisis, larger firms with sufficient cash flow from operating activities are more protected by internal control and more resilient. Mechanistic analysis suggests that internal control further increases enterprise resilience by improving resource allocation efficiency, reducing operating risk, and increasing innovation output. Further analysis shows that government support can enhance the resilience of firms during crises through tax and fiscal policies;a better business environment enhances firms' ability to withstand risks in crisis situations and helps them gain a competitive advantage in crisis situations. Based on this, this paper provides empirical evidence for revising and improving the internal control system of enterprises to reduce the negative impact of public health emergencies in the context of epidemics. © 2022 by the authors.

Financial reporting quality in pandemic era: case analysis of Vietnamese enterprises

This study aimed to evaluate the financial reporting quality (FRQ) of Vietnamese enterprises in the pandemic era. It also examines the effect of the Big 4 audit firms in addition to non-Big 4 audits, and internal control effectiveness (ICE) on FRQ. The case study method was implemented to complete the scale of the FRQ identified by IASB in 2010 (FASB & IASB 2010) and identify the challenges encountered when preparing and representing financial reports (FRs) during the COVID-19 pandemic crisis. The survey was conducted to measure the FRQ and to examine the effect of the three factors detailed above on the FRQ. The research results indicate that all three factors significantly affect the FRQ. The results also imply the predictive value of Vietnam enterprises' FRs in that they have been strongly affected by the COVID-19 pandemic. © 2021 Informa UK Limited, trading as Taylor & Francis Group.

THE MATURITY LEVEL ASSESSMENT OF INTERNAL CONTROL ASSURANCE

The article explains how Capability Maturity Models from CMMI can be integrated with COBIT 2019 in order to design the worksheet for maturity self assessment of the internal control assurance focus area. First the scope of focus is described and then by the help of maturity assessment rules that are embedded in COBIT 2019 the design of work sheet is presented along with an example of completed answers and results. The proposed procedure allows the organization's management to get a quick answer to whether their organization reaches the fourth level of the internal control system maturity, which is currently an appropriate level that reduces the risks of COVID and digitalization. © 2022 IDIMT. All rights reserved.

Importancia de las estrategias en las Obligaciones Tributarias frente a la Emergencia Sanitaria Covid-19 en Pymes de Cuenca, Ecuador

Ecuador has among its main revenue taxes;however, tax compliance represents a divergence between the state objective of collecting taxes for public investment and people’s willingness to avoid paying taxes. Due to the health crisis caused by Covid-19, tax collection decreased, public debt rose and GDP declined, during this crisis the government decreed, in March 2020, several measures that prevented companies from carrying out their activities normally, facing a weak economy in the process of reactivation. The objective was to analyze the importance of tax compliance for the country and the panorama of SMEs in the city of Cuenca in the context of the Covid-19 global pandemic, considering their income, sources of employment, and income tax caused from the periods 2016 to 2020. For the study, a methodology with a mixed approach was used, descriptive scope from a non-experimental and longitudinal design of group evolution in the SMEs of the canton Cuenca-Ecuador, whose result shows the impact of the pandemic in the first year leading to confinement and strong restrictions such as free movement were imposed, which brought about the socioeconomic effect that affected a third of the population. Therefore, a proposal of generic strategies was established to support tax obligations in order to avoid penalties and strengthen the contribution to the country.Alternate :Ecuador tiene entre sus principales ingresos los impuestos, sin embargo, el cumplimiento tributario representa divergencia entre el objetivo estatal de recaudar impuestos para la inversión pública y la disposición de las personas de obviar el pago de impuestos. Debido a la crisis sanitaria provocada por el Covid-19 la recaudación tributaria decreció, la deuda pública se elevó y el PIB declinó, durante esta situación el gobierno decretó, en marzo del 2020 varias medidas que impidieron a las empresas realizar sus actividades con normalidad, enfrentándose a una economía débil y en proceso de reactivación. El objetivo del presente estudio es analizar la importancia del cumplimiento tributario para el país y el panorama de las Pymes cuencanas en contexto de la pandemia mundial Covid-19, considerando sus ingresos, fuentes de empleo e impuesto a la renta causado de los periodos 2016 al 2020. Para el estudio se empleó una metodología con enfoque mixto, alcance descriptivo desde un diseño no experimental y longitudinal de evolución de grupo en las Pymes del cantón Cuenca (Ecuador), cuyo resultado se desprende el impacto de la pandemia en el primer año llevando al confinamiento y se impusieron fuertes restricciones como la libre circulación, lo que trajo consigo el efecto socioeconómico que afectó a un tercio de la población. Por lo cual, se estableció una propuesta de estrategias genéricas que apoyen a las obligaciones tributarias a fin de que su cumplimiento sea de manera apropiada evitando sanciones y a su vez se fortalezca la contribución al país.Alternate :O Equador tem entre seus principais impostos de renda, no entanto, o cumprimento fiscal representa uma divergência entre o objetivo do Estado de cobrar impostos para investimentos públicos e a vontade das pessoas de evitar o pagamento de impostos. Devido à crise de saúde causada pelo Covid-19, a arrecadação de impostos diminuiu, a dívida pública aumentou e o PIB diminuiu. Durante esta situação, o governo decretou, em março de 2020, várias medidas que impediram as empresas de realizar suas atividades normalmente, enfrentando uma economia fraca no processo de reativação. O objetivo deste estudo é analisar a importância do cumprimento fiscal para o país e as perspectivas para as PMEs em cuenca no contexto da pandemia global Covid-19, considerando sua renda, fontes de emprego e imposto de renda para os períodos de 2016 a 2020. Para o estudo foi utilizada uma metodologia com abordagem mista, de escopo descritivo a partir de um desenho não experimental e longitudinal da evolução do grupo nas PMEs do cantão Cuenca (Equador), cujo resultado mostra o imp cto da pandemia no primeiro ano que levou ao confinamento e foram impostas fortes restrições como a livre circulação, o que trouxe consigo o efeito socioeconômico que afetou um terço da população. Portanto, foi estabelecida uma proposta de estratégias genéricas para apoiar as obrigações fiscais a fim de garantir o cumprimento adequado, evitar penalidades e reforçar a contribuição para o país. Traduzido com a versão gratuita do tradutor - www.DeepL.com/Translator O Equador tem entre seus principais impostos de renda, no entanto, o cumprimento fiscal representa uma divergência entre o objetivo do Estado de cobrar impostos para investimentos públicos e a vontade das pessoas de evitar o pagamento de impostos. Devido à crise de saúde causada pelo Covid-19, a arrecadação de impostos diminuiu, a dívida pública aumentou e o PIB diminuiu. Durante esta situação, o governo decretou, em março de 2020, várias medidas que impediram as empresas de realizar suas atividades normalmente, enfrentando uma economia fraca no processo de reativação. O objetivo deste estudo é analisar a importância do cumprimento fiscal para o país e as perspectivas para as PMEs em cuenca no contexto da pandemia global Covid-19, considerando sua renda, fontes de emprego e imposto de renda para os períodos de 2016 a 2020. Para o estudo foi utilizada uma metodologia com abordagem mista, de escopo descritivo a partir de um desenho não experimental e longitudinal da evolução do grupo nas PMEs do cantão Cuenca (Equador), cujo resultado mostra o impacto da pandemia no primeiro ano que levou ao confinamento e foram impostas fortes restrições como a livre circulação, o que trouxe consigo o efeito socioeconômico que afetou um terço da população. Portanto, foi estabelecida uma proposta de estratégias genéricas para apoiar as obrigações fiscais a fim de garantir o cumprimento adequado, evitar penalidades e reforçar a contribuição para o país.

Integrated supply chain security risk management with a focus on customer service

The management of supply chains in the new time that will open once the coronavirus SARS-CoV-2 (COVID-19) pandemic is overcome will tend to give a key importance to risk management. It will mean greater chain visibility, and greater collaboration momentum will be needed, in order to diligently take consensual action. The objective of this article is to provide a theoretical approach to the integration of supply chain security risk management to the organizational system with a focus on customer service as a key logistics activity. For this, theoretical modeling was used with a systemic, structural approach with logical consistency adapted to elements of logistics and internal control. Links are established between the supply chain security system and the internal control system, focused on logistics flows in an organization. It is determined that, in terms of supply chains, it will be effective to manage risks with a focus on customer service, from the reduction of the five existing gaps in this environment. It is concluded that the integration of supply chain security risk management is a quality that seeks the effectiveness of these systems in organizations with a focus on customer service, integrated with internal control, thus achieving a better capacity of immediate response to the demands of the supply networks. (English) [ FROM AUTHOR] La gestión de las cadenas de suministro, en la actualidad, una vez se supere la pandemia de coronavirus SARS-CoV-2 (COVID-19) tenderán a dar una importancia clave a la gestión de los riesgos. Va a implicar una mayor visibilidad de la cadena, y se necesitarán un mayor impulso de la colaboración, con el fin de tomar medidas consensuadas con diligencia. El objetivo de este artículo es ofrecer una aproximación teórica de la integración de la gestión de riesgos de la seguridad de las cadenas de suministros al sistema organizacional con un enfoque en el servicio al cliente como actividad clave de la logística. Para esto se utilizó la modelación teórica con un enfoque sistémico-estructural con consistencia lógica, adaptado a elementos de la logística y el control interno. Se establecen los nexos entre el sistema de seguridad de las cadenas de suministros y el sistema de control interno, enfocados en los flujos logísticos en una organización. Se determina que, en materia de cadenas de suministros, será efectivo gestionar los riesgos con un enfoque al servicio al cliente, a partir de la reducción de los cincos brechas existente en este entorno. Se concluye que la integración de la gestión de riesgos de la seguridad de las cadenas de suministros es una cualidad que busca la efectividad de estos sistemas en las organizaciones con un enfoque al servicio al cliente, integrado al control interno, se logrará así una mejor capacidad de respuesta inmediata a las demandas de las redes de suministros. (Spanish) [ FROM AUTHOR] Copyright of Ingeniería y Competitividad is the property of Universidad del Valle and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

Cash flow bullwhip control mechanisms in a major crisis situation: a case study from the COVID-19 crisis

Purpose To understand the specificities of Cash-flow bullwhip in the context of major crises similar to that of COVID-19, to identify its financial impacts on the Moroccan FMCG companies, to establish the profile of the companies most affected by this CFB and finally to propose internal control mechanisms that should be put in place to mitigate the effects of Cash flow Bullwhip in such a context. Design/methodology/approach The authors chose to conduct descriptive research on companies operating in the fast-moving consumer goods sector in Morocco. For this purpose, a survey was conducted on a target population during the period from December 2020 to March 2021. To answer the different research questions, a multiple correspondence analysis (MCA) has been conducted on the 21 variables obtained from the survey questions. Findings Small and medium-sized companies are those that have been the most financially impacted. Indeed, the instability of the cash flow conversion cycle increased their working capital requirements and limited their self-financing capacity. To face this situation, those companies used alternative means to finance their operational activity by using their equities or bank loans. Originality/value Due to the originality of the COVID 19 context, this study gives a different angle of view to analyze the cash flow bullwhip and its implications on the financial health of companies.

Resource-efficient internally controlled in-house real-time PCR detection of SARS-CoV-2.

BACKGROUND: The reliable detection of SARS-CoV-2 has become one of the most important contributions to COVID-19 crisis management. With the publication of the first sequences of SARS-CoV-2, several diagnostic PCR assays have been developed and published. In addition to in-house assays the market was flooded with numerous commercially available ready-to-use PCR kits, with both approaches showing alarming shortages in reagent supply. AIM: Here we present a resource-efficient in-house protocol for the PCR detection of SARS-CoV-2 RNA in patient specimens (RKI/ZBS1 SARS-CoV-2 protocol). METHODS: Two duplex one-step real-time RT-PCR assays are run simultaneously and provide information on two different SARS-CoV-2 genomic regions. Each one is duplexed with a control that either indicates potential PCR inhibition or proves the successful extraction of nucleic acid from the clinical specimen. RESULTS: Limit of RNA detection for both SARS-CoV-2 assays is below 10 genomes per reaction. The protocol enables testing specimens in duplicate across the two different SARS-CoV-2 PCR assays, saving reagents by increasing testing capacity. The protocol can be run on various PCR cyclers with several PCR master mix kits. CONCLUSION: The presented RKI/ZBS1 SARS-CoV-2 protocol represents a cost-effective alternative in times of shortages when commercially available ready-to-use kits may not be available or affordable.

Comparative performances of seven quantitative Reverse-Transcription Polymerase Chain Reaction assays (RT-qPCR) for detecting SARS-CoV-2 infection in samples from individuals suspected of COVID-19 in São Paulo, Brazil.

Introduction: Brazil is the second largest country with COVID-19 positive cases worldwide. Due to the potent spread of the virus and the scarcity of kits and supplies, the Brazilian Ministry of Health has granted authorization for the use of kits available during this emergency, without an accurate evaluation of their performance. This study compared the performance and cost-effectiveness of seven molecular assays/kits available in São Paulo, Brazil, for SARS-CoV-2 diagnosis. Materials and methods: A total of 205 nasopharyngeal/oropharyngeal samples from suspected cases of COVID-19, were tested using the following assays: (i) GeneFinder COVID-19 plus RealAmp kit; (ii) 2019-nCoV RNA PCR-Fluorescence Probing, Da An Gene Co.; (iii) in-house RT-qPCR SARS-CoV-2 IAL; (iv) 2019-nCoV kit, IDT; (v) molecular SARS-CoV-2 (E) kit, Bio-Manguinhos; (vi) Allplex 2019-nCoV modified Assay, Seegene Inc, and (vii) Biomol one-step COVID-19 kit, IBMP. The criteria for determining a SARS-CoV-2 true positive result included the cycle threshold cut-off values, the characteristics of exponential/linear curves, the gene target diversity, and a positive result in at least two assays. Results: The overall sensitivity of the assays listed were GeneFinder 83.6%, Da An Gene 100.0%, IAL 90.4%, IDT 94.6%, Bio-Manguinhos 87.7%, Allplex 97.3%, and IBMP 87.7%. The minor sensitive gene target was RdRP. Although all assays had a Cohen's Kappa index ≥0.893, the best tests used multiplex assays identifying N-gene and/or E-gene targets. Conclusion: All assays tested accurate for diagnosis, but considering cost-effectiveness (cost, time consumption, number of samples tested, and performance), the in-house IAL assay was ideal for COVID-19 diagnosis in São Paulo, Brazil.