Reacting to COVID-19 in internal control over financial reporting
Anticipating the challenges, responding with confidence
In this article, we outline how an organization's internal control over financial reporting may be impacted by the current COVID-19 crisis and detail some considerations related to business processes, technology, and control testing practices. While regulatory reporting relief may be available, ongoing review of your organization's internal control environment is crucial to provide investors, regulators, and other stakeholders with relevant and timely information.
During this time of uncertainty, internal controls are critical to instilling confidence in reliable financial reporting and disclosures.
Topics covered in this article:
- Implications for management. How can management ensure key controls operate in the appropriate time period and what are the main risks to accurate reporting of operational and financial performance?
- Impacts on an organizations ICFR program. Each organization’s internal control over financial reporting (ICFR) program will be uniquely impacted by COVID-19 and organizations should consider their program on a holistic basis for potential changes or shifts in focus. We detail some of the additional controls or control modifications that may be required to address the risks created by COVID-19