Dive brief:

  • Companies’ audit committees generally handle their COVID-19-associated workload without the need of trouble despite getting to carry out their enterprise remotely, a KPMG survey finds.
  • But just about two-thirds of audit committee users claimed intensified duties as they get the job done with business management to seize the affect of the pandemic in their accounting and economic reporting, KPMG uncovered. 
  • “The uncertain trajectory of COVID-19 — coupled with the in depth use of ahead-wanting information and facts in economic statements and SEC filings — have produced disclosures … a prime space of aim,” the report states. The report was dependent on input from 114 audit committee chairs and members. 

Dive insight:

How to measure firm danger elements, monitor liquidity, and make modifications to the management, dialogue and investigation (MD&A) section of fiscal reviews are among the matters dominating committees.

Forecasting income circulation and calculating impairment of goodwill and other non-financial belongings are other large matters, the report said.

CFO Dive / data from KPMG

 

All community firms have audit committees to enable tutorial the CFO and finance and accounting teams in their operate. They assist guarantee money statements are precise, and, if they see weaknesses, deliver in external auditors.

They also evaluate the finance team’s budgeting and forecasting and implementation of interior controls and risk assessments.

Digital do the job

Remote work’s minimal effects appears to be just one of the silver linings of the study findings. 

Despite the fact that 62% of committee associates say they’re reassessing their workload because of COVID-19, remote operate hasn’t posed a challenge. Pretty much 80% say you will find been no effect on the working connection between the committee and the CFO and 7% say it is really even improved. Responses to committees’ work on fiscal management and with organization unit leaders and auditors, both of those inner and exterior are related. 

“Distant is not perfect, but it can be doing the job,” the report says. 

Committees never feel strain to return to in-man or woman functions. A 3rd of committee members say their CFO can function remotely indefinitely without the need of hindering operations and they gave equivalent responses for other features. 

Respondents most want enterprise unit leaders to return to the office, though 28% say they could get the job done remotely indefinitely. 

Returning to do the job

One particular of the regions committees are focusing on is their firm’s approach for finding staff members back to the place of work.

Virtually a few-quarters of committee members say it’s the best item on their inner management agenda, and just about 40% say analyzing the return-to-work prepare and its connected challenges is a aim of their internal audit responsibilities.