The disease caused due to the spread of the Novel Coronavirus is a global health crisis, and it has brought the whole world to a literal standstill. COVID-19 has affected the world as a whole especially the economies of the countries in a huge way. The world as a whole is taking up measures to stand against this global pandemic.
The work of auditors has become more stringent as they now need to follow strict guidelines in relation to the current situations. The auditors also need to take special care while performing an audit as their assessment will now reflect on the complete Gross Domestic Product (GDP) of a country. They also will have to look into developing new and alternate processes to gather the required auditing data from a company.
Here are some of the most significant impacts which can be seen on businesses all around the world:
1.Stress on Digitalization
One of the biggest impacts of the Coronavirus is that now more and more businesses will be stressing on the digitalization of the company processes. In the present situation, when most of the world is in lockdown, physical presence to perform the various activities is not possible for an entity. If the company already stresses using a digital process, the day to day activities and the data gathering can be done more easily and without any discrepancies in the result.
2.Report the impact of the Corona Virus on the Company
Businesses all over the world are being impacted due to this virus, which has, in turn, affected how the businesses function. The auditors need to make the required changes in the auditing procedure to adjust for the changes made by the company. As the present situation is very unpredictable, every business needs to adjust to the changes which happen in the business environment as time passes.
3.Changes made by the Government/Regulatory Authorities
There are a number of steps which are taken up by the concerned authorities and governments of the countries to combat this situation. The Governments of the various countries, as well as the respective auditing authorities, also are altering the auditing and reporting standards accordingly. These changes will include changes in the reporting standards, any change made by the concerned authority until the time of the end of the crisis, etc.
4.The Preparation for the inevitable Cash Crunch
As the whole world is under lockdown, there is a significant depression on the horizon. Global authorities such as the International Monetary Fund (IMF) and World Bank have projected a grim economic picture for the future. It is up to the auditors and the accountants to provide assistance in allocating the resources of the company in a proper fashion.
Fraud detection is one of the most basic functions of auditing, but in the present scenario, it is the most essential function for a business. If a business wants to overcome the present conditions and stay functional, it is very crucial to remove any kind of fraud from the business. This will not only help save some essential funds but will also shorten the complete process of the business.
These are some of the changes which may seem small but have the capacity to change the entire working of a business. The various auditing firms need to heighten their sense as they will now have less time, incomplete information, and the factor of social distancing, which may act as a hindrance for an auditor.
As time passes by and the current scenario changes, there may be many more changes which the business has to follow. These changes are for the betterment of the business and will help the business to survive the tough times ahead. The auditors and the accountants now have a new objective, which is to keep the business afloat. It remains to be seen how effectively are the challenges met by the auditors and the accountants in the near future.
This is the best time to avail of the services of a financial consultancy firm, which will not only take due care of the financial aspect of your business but will also help your business to grow further by providing the correct advice at the right time. If you are searching for any such firm in the United Arab Emirates, then consider your search over.
JAXA Chartered Accountants is a reputed ISO 9001:2015 financial consultancy firm that will assist your company at all times and help it achieve its maximum potential. JAXA devotes itself to provide quality financial services at competent prices. For more details on the services offered, Contact Us. We will be glad to help.