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Audit in times of Corona. We don't need that now, do we?

Friday 17/04/2020
Audit in tijden van Corona

The impact of the Corona crisis on our daily lives has become indispensable. The necessary measures to protect our health and healthcare also create many new challenges for our economy.

Entrepreneurs and companies are constantly balancing on a tightrope between our health, the common good and the various measures to protect it on the one hand, and the financial health of their company on the other. 

Is the audit of the figures in these times more of a necessary evil than one that really deserves no attention now? Wouldn't it be better to devote this time and energy to more productive matters? 

The answer to these questions is clear: no! 

The hunger for qualitative financial information is greater than ever. For example, do you need additional sources of financing to bridge this difficult period, or would you like to reallocate existing credit lines? The banks will be much more inclined to collaborate on this on the basis of reliable data. 

Unfortunately, this crisis also brings with it some extra risks for your organisation. As a result of the measures, various companies will have to cope with a reduced number of employees, and the available employees will often have to carry out their daily tasks in a highly adapted setting. As a result, your organisation's internal control measures may not work adequately: 

  • Certain controls cannot be carried out or are difficult to carry out;   
  • The principle of segregation of duties may not always be honoured by the loss of employees; 
  • The information and reporting necessary for the management of your company may not or may be delayed.

This significantly increases the risk of errors in your financial reporting. The risk of fraud also increases in a weak internal management environment.  

The economic impact of this crisis can also have a strong impact on your company's figures. Think, for example, of the outstanding trade receivables that will be paid late or not at all.  Or the available stocks that are more difficult or no longer realisable. For some companies, continuity is even threatened as a result of this crisis.

If you have other questions regarding the Corona crisis, please visit our special FAQ

Last update: 30/04/2020

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Johan Van Mieghem

Johan Van Mieghem

Managing Partner Audit

Statutory auditor services

Koen van Eupen

Koen van Eupen

Partner - Audit