Risks and Related Projects Not Covered in the Proposed Plan

Compliance Risks

Risk

• 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 financial reporting information and public disclosure

Internal Audit response

• Interpretation and implementation of regulation: Continue open lines of communication with relevant regulators and ensure that where changes are required. Internal Audit could play a role by providing its resources and skills to the business or are involved in a consultative manner during the implementation.
• Compliance with deadlines: Assess process and controls to manage compliance with legislative and contractual timeframes and/or client service KPIs for regulatory reporting, and legislated customer service obligations.
• Process and control mapping of business critical functions: Map key processes and controls of affected areas and understand the impact of potential changes to these controls under various contingency scenarios. For example, this could consider: impact of changes to management roles and structures on delegations of authority; changes to system access and change controls to enable flexible work arrangements.
• Continue to meet compliance/regulatory requirements: Ensure the business is meeting regulatory obligations. Regulatory and/or compliance-related reviews should continue to be prioritised within the plan where applicable, unless clear direction is provided by regulatory bodies. 
• Ability to meet regulatory and related requirement filings: Ensure the City has prepared a comprehensive summary of its required regulatory and related requirements, including annual and applicable tax/ministry filings and payments, respective payroll, statutory audit requirements globally, and any debt required filings.
• Evaluate audit impact with external auditor: Liaise with external auditor to determine if the completion of audit or review procedures has been impacted by the COVID-19 outbreak.
• Significant and unusual transactions: Support the City through risk assessments and process & controls implemented related to any significant and unusual transactions.
• Disclosure requirements: As events continue to unfold, should support the business through decisions regarding required disclosures in areas such as, risk factors, and management’s discussion and analysis of results, liquidity, and capital resources.