As competition in business grows, performance management becomes increasingly important. Companies working in the field of accounting and auditing need to develop, implement and improve performance management processes. Therefore, a prerequisite for their success must be a highly productive culture at each level of management, so that each individual employee understands how their individual efforts correlate with the overall strategy of the company, and the management, in turn, must know that the chosen strategy pays off. Without this, even the most impressive performance management systems and processes will be useless.

With the spread of COVID-19 around the world and the introduction of strict quarantine measures in most countries, the risks to business have not only increased, but they have become a real threat to the companies’ existence. Therefore, one of the main tasks of internal audit now is to manage the company’s financial, operational, legal, strategic and IT risks in order to keep it afloat. However, the unstable situation in the economy and the labor market causes risks for the very internal audit function. Let's focus on the main risks of internal audit, which should be paid special attention in the coming years.

The Financial Reporting Council (FRC) of the United Kingdom will soon become a regulatory body with extended powers – the Audit, Reporting and Governance Authority (ARGA). Another step towards its formation was the publication of the final version of the development strategy for 2021–2022. The first step was its previous version, presented in February.

The International Accounting Standards Board (Board) has launched a public consultation on a new approach to developing disclosure requirements in IFRS. As part of this document, the International Accounting Standards Board (IASB) has also proposed additional requirements for fair value measurement (IFRS 13) and employee benefits (IAS 19). In both cases, the authors hope, this will allow reporting agents to get rid of the pattern of disclosures to some extent and improve professional judgment on this part, and provide reporting users with more useful information for decision-making.

In times of rapid change, business cannot work based on old models, it must be transformed, otherwise there is a great risk of being left behind competitors. Therefore, it is necessary to monitor not only the market innovations, but also the situation in the world, the development of technology.

The US Financial Accounting Standards Board (FASB) has issued a formal update to standards for goodwill accounting that provides an alternative approach to evaluating goodwill impairment for private and nonprofit organizations. This means a significant simplification of current assessment of the goodwill triggering events.