Agenda

COVID 19 and Fraud Risks

We come across a new economic crime news almost every day in the media. Especially in the Covid 19 environment, economic crime statistics have reached the ceiling. The risks of fraud from Covid 19 are different for each organization, depending on their ability to trade, particularly during the shutdown. There are a number of motivations for falsifying accounting information during and after the pandemic to photograph businesses in a more favorable light, whether to help secure financing or for personal gain. Auditors need to be careful when valuing risks and evidence related to areas requiring more judgment, such as revenue recognition, asset valuation, capitalization of expenditures, goodwill impairment, provision for doubtful receivables, and valuation of long-term contracts.


 

In the Covid 19 environment, the way of doing business for many businesses has also changed. This situation does not make it operationally possible to implement controls designed for the pre-pandemic mode of operation. Opportunities arise for many financial transactions to be concluded without the same level of oversight. Where business practices change, it is important to review the control environment and redesign it as necessary. Assessments of fraud risks should be updated following changes in work practices in response to Covid-19 measures and change in control environments. The operation of replaced controls should be regularly tested and reviewed. Failure to do so could result in the misappropriation of company assets or the execution of significant financial transactions without the necessary approvals.

In the Covid 19 environment, organizations may also have had to change their supply chains, so organizations must ensure that all new suppliers go through appropriate processes that protect the business from procurement risks, including bribery. Failure to adequately address the risk of bribery and corruption posed by Covid-19 can result in significant reputational damage for businesses.

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Gündem

Denetimde İnsansız Hava Araçları (İHA)

Finansal tabloların muhasebe standartlarına uygunluğu konusunda görüş bildiren bağımsız denetçiler, kanıt toplama faaliyetlerinin etkinliğini, verimliliğini ve dolayısıyla denetim kalitesini artırmak amacıyla en son teknolojiyi ve kaynakları kullanmaktadır.

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