How did the Covid-19 pandemic affect financial reporting?
This is one story where we recommend taking a look at the original visuals, as Bloomberg reports on ‘How the pandemic shaped financial reporting, in four charts,’ based on a study by Audit Analytics. It looked at some key metrics commonly used to gauge the reliability of financial reporting – including going-concern audit opinions, impairments, internal controls and restatements – and how they were affected by the uncertainty of a pandemic. Of the metrics considered, the most notable impacts were seen in soaring impairments, reflecting changes in forecasts and assumptions, and a huge peak in changes in internal controls as companies adapted to shifting risks and modalities.
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