In: Accounting
Answer 1
Covid-19 has created challenges to whole mankind, everyone is scared and tries to keep himself safe. When we talk about business impact, many businesses have lost their lives, they are becoming bankrupt day by day due to the nature of industry like tour and travel, hotel, etc.
However, when we talk about Pharma business, it is the least impacted business with higher revenue during this period, as panic buying making these companies more cash-rich rather than cash strapped, however, there is a production issue but most of the government all over the world allowed them to operate at full capacity with precautionary measures. The pharmaceutical business is doing very well as all inventory of medicine is moving so fast their sales are growing day by day and it is estimated that it will grow with a steep rise at least 2-3 years.
For example Company name Sun Pharma, Listed in Indian Stock market, as India is the leading manufacturer of medicines al over the world, Sales of this company is going hight as every country is asking for more supply and trusted supplier are limited so they are getting a huge contract at good prices. Their stock price is all-time high. This shows that Pharmaceutical business has favorable impact on this medical disaster.
Answer 2:
The auditor conclusion is based on the documentary evidence provided to them or gathered by them. Auditor will check the operating capacity of the company, whether they have locked their plant or they were producing the medicine desire, and to whom they were selling at what cost. If the plant is open during this pandemic definitely company doing good, However analysis cant be a single base auditor will check the following things to check the impact on Pharmaceutical business. Auditor will judge the Pharmaceutical company on the following pints -
1- whether medicine made by the company used to cure COIVD-19 in any manner?
2- Companies expert area?
3- Company capacity for treating patients.
4- Export order inline,
5-Loss due to lockdown etc
These are the indicative list to judge their performance by the auditor.