Question

Describe with examples 6 (SIX) controls that an organizations can utilize to fortify their accounting systems during a crisis such as Covid-19.

- modified control protocols especially when there was a need to work from home

-boosting up security as cyber attacks would be on the increase

-modification of contracts

Answer 1

1 _ Question Describe(SIX) controls that an organizations can utilize to fortify their accounting systems during a crisis such as Covid-19. coronavirus 2019 (COVID-19) pandemic has brought major disruptions worldwide, with further impacts yet to be felt. For many businesses, operations are curtailed or dramatically shifted, and supply chains are disrupted. New regulatory and operating guidance is issued daily, with a fair amount of it impacting financial accounting and reporting.

While COVID-19’s impacts vary by industry, all businesses will want to re-evaluate their accounting, reporting and disclosure, as well as Internal Controls Over Financial Reporting (ICOFR) practices, in light of the pandemic.

Finance and accounting leaders should focus on these potential accounting and audit impacts:

• Impairment of goodwill — Assess whether direct or indirect implications of COVID-19 have led to a goodwill impairment. Future cash flow expectations may be affected by COVID-19 if its disruptive effects are sustained.
• Impairment of long-lived assets — Consider whether any current, significant devaluation of long-lived assets is recoverable. Indicators, such as significant drops in price, sustained adverse changes in use or utility of an asset, negative changes in business climate or downward economic pressures, should prompt impairment assessments of long-lived assets.
• Inventories — net realizable value — If the company has suffered revenue declines or disrupted supply chains, consider adjusting the carrying value of inventory downward. Losses may result from exceeding expiration or sell-by dates, physical deterioration, obsolescence, or price changes.
• Inventories — reduced manufacturing levels and excess capacity costs — If manufacturing drops below standard levels due to labor or material shortages, consider cost-of-inventory impacts. Underutilized capacity resulting in excess fixed overhead that can’t be allocated to products must be expensed in the same period it’s incurred.
• Impairment of receivables, loans and investments — Review investment value for potential impairment. This may be indicated with debt or equity issuers affected by COVID-19. Specific rules for testing for impairment are based on an investment instrument’s classification under GAAP
• 2-Question modify control protocols especially when there was a need to work from home. , Microsoft, Twitter. Hitachi, Apple, Amazon. Chevron, Salesforce, Spotify. From the UK to the US, Japan to South Korea, these are all global companies that have, in the last few days, rolled out mandatory work-from-home policies amid the spread of Covid-19

Many businesses quickly shifted to remote work, where possible, and abandoned operations in an office setting when COVID-19 became a pandemic or when jurisdictions required or encouraged people to stay at home. Now, as these businesses contemplate resuming operations in the general office setting, they are grappling with a myriad of issues and concerns.

Although not all-inclusive, this article sets forth some basic considerations for resuming work in the office setting.1 This article lists best practices to consider, but such practices may not be possible, practicable, or appropriate in various work environments, and every company should determine its own protocol consistent with applicable legal requirements.

3-Question-boosting up security as cyber attacks would be on the increase

As the world adjusts to the work-from-home culture, companies and businesses are facing a new challenge in the form of cyber attacks and ransomware. There has been a dramatic increase, in fact, in the number of cyber attacks over the past few months, affecting both small and large businesses and individuals. Be it payments and shopping or sharing files and accessing VPN, the pandemic has opened up new avenues for scammers and fraudsters to hoodwink individuals and businesses.

It is important to know that all it takes is one click of the mouse for the computer to become infected with spyware. There are many websites that are camouflaged to look like real websites. When entering URLs, users must make sure to check the name of the website and absolutely avoid clicking on popups, ads and links to other websites. These are quite ingenious attempts by hackers to get into the system to steal data.

Another easy way that companies can adopt to stop staff clicking on a ransomware link in an email is using content scanning and email filtering, which ought to take care of many phishing and ransomware scams before they actually reach the staff.

4- Modification of comtracts

Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales.

The parties to a completed and binding contract are free to change the terms of the contract. Changes to a preexisting contract are called contract modifications. If the parties agree to modify the contract, the modification will be enforceable in a court of law.