The COVID-19 pandemic has triggered rapid changes to business processes, not least of which has been the widespread migration of employees to remote working arrangements. Kral Ussery partner Michael Ussery explores what impacts these business processes changes might have on internal control over financial reporting (ICFR).
The rapid closure of many “nonessential”[1] businesses and government orders to “shelter in place” have had unprecedented impacts on businesses of every size and shape. Businesses have shuttered offices or significantly reduced office personnel. As a result, most office workers, including accounting and financial reporting staff, have been forced to work from home. This migration has not only impacted where employees work, but how they work. Many companies have been forced to implement temporary workarounds for processes and procedures that worked smoothly in a cohesive office environment but may be ill-suited for a home-based workforce.
Remote work arrangements have also raised new potential challenges and fraud risk. The onset of the changes was so quick, few companies had sufficient time to react. In a matter of a couple of days, many companies had to migrate from office staff working cohesively in a closed office environment to a virtual home environment. Some employees had…
