{"id":332,"date":"2020-11-12T04:29:54","date_gmt":"2020-11-12T04:29:54","guid":{"rendered":"https:\/\/www.cac.net.in\/blog\/?p=332"},"modified":"2024-10-11T16:56:23","modified_gmt":"2024-10-11T11:26:23","slug":"the-changing-role-of-internal-audit-during-a-pandemic","status":"publish","type":"post","link":"https:\/\/www.cac.net.in\/blog\/the-changing-role-of-internal-audit-during-a-pandemic\/","title":{"rendered":"The Changing Role Of Internal Audit During A Pandemic"},"content":{"rendered":"\n

The changed reality makes not only entire companies, cities,\ncountries, the world change, it also makes us, ordinary people, change. The\npurpose of this article is to guide internal auditors to take action now, in\nresponse to the challenges that COVID-19 has posed for all of us.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The acute phase of the COVID-19 coronavirus infection\npandemic, according to various expert estimates, may last until the end of\n2020, while the economic consequences of it will be felt for a long time (at\nleast on the horizon up to 3 years).<\/p>\n\n\n\n

In recent decades, the world has faced a considerable number\nof local (default in 1998) and global crises (crisis in 2008). <\/p>\n\n\n\n

But no previous crises have been as deep and systemic as the\ncurrent one. For example, during the 2008 mortgage crisis, many people lost\ntheir jobs, banks and other companies in the financial sector went massively\nbankrupt, but although most people experienced the economic consequences of the\ncrisis, in general, life went on as usual. <\/p>\n\n\n\n

The current crisis, in addition to the bankruptcies of a\nsignificant number of organizations, threatens the life and health of people.<\/p>\n\n\n\n

In these conditions, the classic functionality of internal\naudit is subject to revision, given that in such a rapidly changing\nenvironment, a look into the past and analysis of historical data, as well as\nrecommendations for improving the internal control system may no longer be relevant\neither for business owners or for management.<\/p>\n\n\n\n

The advisory function comes to the fore, allowing an\nindependent assessment of the response to the crisis, as well as the assessment\nand implementation of anti-crisis measures carried out by the management of\ncompanies.<\/p>\n\n\n\n

Internal audit should participate as independent observers\nand testers in the development of various stress scenarios, with special\nattention should be paid to all identified deficiencies and a set of measures\nto control their elimination.<\/p>\n\n\n\n

Based on the results of the measures taken, the retail audit companies<\/a> <\/strong>give confidence to the stakeholders about the readiness\/unpreparedness of the organization to continue its activities in a crisis.<\/p>\n\n\n\n

In case of unavailability, a second check should be carried\nout after the management has eliminated all the identified comments and\ndeficiencies.<\/p>\n\n\n\n

What does internal\naudit do when the crisis hits?<\/strong><\/p>\n\n\n\n

As mentioned above, the liquidity reserve during a crisis\ncomes to the fore in many organizations.<\/p>\n\n\n\n

The following questions arise: \u201cHow long is the company able\nto make payments on wages, rent payments, etc.? before the cash gap? What\nactions need to be taken to keep liquidity at an acceptable level until the\npeak of the pandemic passes and society returns to normalcy?<\/p>\n\n\n\n

Retail audit companies in India<\/a><\/strong> has several opportunities to help the management of the company answer the urgent questions facing the management. However, some of the activities may cause loss of function independence in the short term.<\/p>\n\n\n\n

The annual plan, approved a few months ago, before the start\nof the pandemic, most likely has lost its relevance. The owners and management\nof the company are now faced with the task of survival of the business,\neverything else does not matter.<\/p>\n","protected":false},"excerpt":{"rendered":"

The changed reality makes not only entire companies, cities, countries, the world change, it also makes us, ordinary people, change. The purpose of this article is to guide internal auditors to take action now, in response to the challenges that COVID-19 has posed for all of us. The acute phase of the COVID-19 coronavirus infection…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[21,22,95,34],"class_list":["post-332","post","type-post","status-publish","format-standard","hentry","category-retail-audit","tag-retail-audit-companies","tag-retail-audit-companies-in-india","tag-retail-audit-company-in-delhi","tag-retail-audit-firms-in-india"],"_links":{"self":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/comments?post=332"}],"version-history":[{"count":2,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/332\/revisions"}],"predecessor-version":[{"id":396,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/332\/revisions\/396"}],"wp:attachment":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/media?parent=332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/categories?post=332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/tags?post=332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}