Importance of internal control in Covid-19 times
Our country is going through a strong economic crisis;After the Pandemia for COVID-19, many of the companies have struggled to stay and others in turn have emigrated to new business strategies to survive in the market, in this process of reinventing itself risks are assumed and it is part of theResponsibility for managing managers and/or managers, seeking adequate control strategies to mitigate them.
Being the current situation a critical moment, the challenge in making decisions against business survival, can put aside good practices. That is why we ask ourselves. How important is internal control in companies in pandemic times? In this article we seek to emphasize the importance of internal control in companies, even more in times of COVID-19.
According to our criteria, internal control in companies is very important and especially in these times of changes, since it allows timely identification of risks, it is vital for decision making and helps mitigate the effects of the crisisthat is going through;This guarantees that the company has real and responsible management.
Internal control at the current situation helps all companies to respond quickly and effectively to constant changes, not to do the factors and vulnerability to them would be high, all those responsible for internal control within the company must be veryattentive to avoid manipulation of documents with confidential information or that the remote activity that is currently being carried out involves a risk event that can materialize.
The internal auditor should always seek actions to identify all possible risks, evaluating its potential impact and reflectively thinking of solutions to counteract them, for which the faithful fulfillment of the internal processes already established is important.
We are currently going through an unusual situation, but it is thanks to the internal control that companies will face each of the risks in an objective way and with broad vision.
Internal control has also been fundamental for the implementation of the changes given in companies;“The current situation forces companies to implement changes to respond to the new risks that emerge very quickly and with enormous pressure.". Adaptability has been synonymous with continuity in the market.
The new challenges are a consequence of factors such as "use of non -safe networks", "Use of documents with confidential information", "pressure in the sales area for business continuity". The aforementioned events and others that arise generate risk and may probably be completed within companies.
Strengthening internal control in companies, allows you to successfully overcome the economic crisis we are going through, mentions “internal control systems must be analyzed to help and facilitate the lifting of the effects of the crisis on critical processes that impactbusiness".
Citing Fernando Isler, the corporate author PWC says that “Pandemia demanded that companies rethink their business processes ensuring that operations flow in one way or another, in the search to comply with mobility restrictions and health priorityThey were made of emergency decisions, and that had to simplify processes "
Rodríguez mentions "in the pressure to obtain results, organizations often penalize in a disproportionate way to the internal audit by making budgetary and personnel reductions", however, as already argued, this area is vital for decision making, stillMore today.
In conclusion, the internal control area in companies generates an important contribution and its strengthening in these times of pandemic is essential, since it depends on the company to be flexible and adaptable in this current demand, managing to generate new business plansDepending on the new needs that originate, of course it is after a thorough analysis of the risks they would face and how they would impact the business in the business. The owners and/or managers must assume with great responsibility this task of implementing the aforementioned controls, otherwise it is very likely that the companies in charge cannot be able to stay and continue underway.
References
- Arbieto, s. (August 12, 2020). PWC challenges. Obtained from https: // challenges.PWC.PE/System-of-Internance-Importance-Covid-19/
- Bdo Peru. (2020). Internal audit in COVID-19 crisis. Obtained from internal audit in COVID-19 crisis: https: // www.Bdo.com.PE/ES-PE/MICROSITES-ES/COVID-19/RISK-ADVISORY/AUDIT-INTERNA-EN-CRISIS-COVID-19
- Deloitte. (2020). Internal audit considerations in response to COVID-19. Obtained from internal audit considerations in response to COVID-19: https: // www2.Deloitte.com/pe/es/pages/risk/articles/considerations-of-air-interna-front-a-covid-19.HTML
- INCP. (May 05, 2020). Obtained from https: // www.INCP.org.CO/LA-IMPORTANCE-DEL-AUDITOR-INTERNO-DURA-LA-PANDEMIA/
- Kpmg trends. (s.F.). Obtained from https: // home.KPMG/VE/ES/HOME/INSIGHTS/2020/03/AUDIT-INTERNA-COVID-190.HTML
- PWC. (May 17, 2020). Obtained from https: // www.PWC.com.AR/ES/PRESS/ANOTHER-IMPACT-COLATERAL-DEL-COVID-19-EL-CONTROL-INTERNO-Y-LA-SEGURITY-INFORMATION.HTML
- Rodríguez, i. (March 23, 2020). Auditool. Obtained from https: // www.Auditool.Org/Blog/Audit-Interna/7067-LA-AUDITORIA-in-Time-Del-Coronavirus
- Weaver, r. (March 2020). Kpmg trends. Obtained from https: // www.trends.KPMG.ES/2020/03/Audit-Interna-Covid-19/
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