The beginning of the year was not easy: despite the good news about coronavirus vaccines, companies have a difficult task to do their best to improve results. Many teams worked at the peak of their efficiency, performing extraordinary amounts of tasks. New lockdowns around the world are forcing us to continue to look for effective ways of remote and hybrid forms of work. We can say that we continue the 2020 vector with all the lessons learned from it. What can leaders do to keep their team effective despite fatigue from lockdown, video calls, and lack of live social contact? Here are some simple tips to keep in mind from the experts of the international audit firm EY.

Last year proved that the crisis in business can be global and that such an uncertain situation can last a long time. Shocks to businesses are not limited to power outages and IT disruptions: organizations are now affected by political and economic shocks. Economists predict an economic downfall around the world, and it will be quite significant. Finally, the pandemic has demonstrated that there is a big difference between having a business continuity plan and business continuity opportunities.

The US’ Financial Accounting Foundation (FAF) has appointed Robert Hamilton to the Governmental Accounting Standards Advisory Council (GASAC). He is the statewide accounting and reporting manager for the stat of Oregon.

An important step has been taken towards global sustainability reporting standards. The trustees of the IFRS Foundation have announced the creation of a new working group. It will accelerate the international convergence of global standards (with special emphasis on the enterprise value) and in parallel address technical issues in preparation for the formation and launch of the new Global Sustainability Standards Board (SSB).

One of the most important issues facing internal auditors is to identify the most critical risks that threaten companies in the face of constant change and innovation. After all, often these risks are not traditional, and they are easy to stay out of the view.

The International Accounting Standards Board (IASB) has made some changes to a number of standards that improve the disclosure of accounting policies and enable preparers of reports to more accurately distinguish between them and accounting estimates. These include IAS 1 “Presentation of Financial Statements”, IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, and Practical Statement 2 “Making Materiality Judgements”.

The approach to internal auditing has evolved in recent years, and more and more internal auditors are aiming to build partnerships with the audited entities. This goal can be achieved through effective communication of internal auditors with their clients – audited units. Here are some practical tips for effective communication during a direct audit.

With the rapid development of technology, there is little room for fraud and revenue manipulation, but this does not mean that such fraud does not occur. International Standard on Auditing 240 states when identifying and assessing the risks of material misstatement due to fraud, the auditor should be guided by the presumption that there are risks of fraud in revenue recognition. Accordingly, the auditor must evaluate which types of revenue, revenue transactions or assertions give rise to such risks. Using the “omission strategy”, it is safe to assume that by manipulating a company's revenue, managers/other stakeholders are more likely to miss a transaction than to record it with error.