Implications of COVID-19 Crisis on Risk Management, Audit and Controls Activities

ABSTRACT

In the context of the COVID-19 pandemic, entities and internal auditors have to face the new challenges posed by changing ways of working. Internal auditors need to give importance to the analysis of exposure to business risk and the implications for financial reporting. The purpose of the financial reporting system is to produce reporting that is complete, accurate, and transparent. COVID-19 has reinforced the need for efficient remote working, even for control activities. Some of impacted areas refers to Risk assessment impact, Effective alocation of resources, Key service organizations reliance, Remote access, Execution of controls and monitoring. In the same time as economic activities, the public sector faced also major changes in audit and internal control activities. The need to reduce social interaction during COVID-19 pandemic is changing the way audit and internal control works, with a much greater emphasis on teleworking, working remotely and with more technology dependence. This situation generates a number of advantages but also disadvantages, which are presented in the content of the article. Teleworking increases cyber security risks and may also require additional infrastructure from auditors, but can reduce costs.