Changing and Emerging Risks for Audit Consideration in the Pandemic

COVID-19 Risk Perspectives Considered in the Audit Plan

Covid-19 Emerging Risks

• Activation of BCP arrangements Management and governance structures
• New or elevated workplace health and safety Incident response risks associated with increased use of remote working
• Transparency & Employee management Protect employees during uncertainty
• Risk Culture Consider impact on risk culture across the organisation
• Fraud Lapse of key fraud controls and management attention
• Public Safety Considerations for Internal Audit COVID-19 PwC Providing essential services and protecting the public and personnel in a time of pandemic.

Operational & Financial Risks

• Supply Chain Visibility and efficiency of the supply chain
• Cash & Funding Resilience Consider short, medium and long term funding
• Third Party Continuity of supply from third party service providers
• Market Opportunities & Vulnerabilities Volatility in investment portfolios, returns and public funding (including timing).
• Tax & Regulatory Potential Impacts

IT Risks

• Remote administration & IT Support Capacity Increased use of remote working arrangements
• New or elevated cyber security risks Potential exposure due to new tools and increased use
• Privacy & Data Protection Potential exposure of customer personal information
• Managing rapid infrastructure change Pressure to implement major infrastructure changes in a short period.

Compliance Risks

• Regulatory/government enforced changes due to COVID-19 Maintain compliance and plan for potential interim changes
• Changes to the control environment Management and governance structures
• Financial Reporting Resiliency over finance & accounting processes to provide stakeholder information