Auditing in 2021: Planning for the year ahead

The COVID-19 pandemic has drastically changed the structure of most business processes around the world. As a result, there are many new challenges and aspects that you have to consider in auditing in 2021. The audit firms in Malaysia are also altering their audit and accounting services to make sure auditing is performed without any errors and hassles.

The peer-review process has always been a challenging part of auditing. However, audit planning has become more difficult in 2021. Following are some important tips that you should follow to ensure smooth and reliable auditing in 2021.

According to a survey, most audits fail because they do not comply with the common rules and regulations. Therefore, it is important that you get professional accounting services in Malaysia so that you can avoid such mistakes and perform auditing as per the best practices.

A major part of these audits is the identification of specific risks. If you are getting the services of an accounting firm, make sure that the entire company is thoroughly analyzed, and all of the essential information is properly documented.

Moreover, identifying risks in 2021 also involves considering the impact of the pandemic on the global supply chain and the overall finances of a company. The purpose of evaluating these factors is to adjust the audit processes as per the new standards.

It is now more important than ever that companies and audit firms conduct thorough analysis and discussions about the changes that have to be made to the audit process while planning for it. Such steps include the analysis of internal and external risks.

The primary issue that most companies suffer from is the lack of information or documentation. Generally, companies that have consistent accounting services in Malaysia are able to streamline this process because they compiled all of the important information in the form of quarterly and monthly financial reports.

Experts also agree that robust planning meetings are the key to ensuring a smooth audit in 2021. When it comes to conducting a smooth and efficient audit, planning is everything. Therefore, companies need to spend a considerable amount of time on this stage to make sure all of the risks are considered before moving on towards the actual auditing stage.

It is important to note that the risks associated with auditing in 2021 can greatly vary from company to company due to a lot of factors. Once you hire the services of an audit firm, they will thoroughly evaluate the type of your business processes and come up with an effective auditing plan. Generally, the current situation has greatly increased the uncertainties in auditing. Therefore, organizations have to make sure that all of the different aspects are fully covered in auditing to ensure its success.

Following are some of the proactive measures that can be implemented to reduce the risk associated with auditing in 2021:

• Evaluate the current practices to identify and respond to any kind of possible employee disengagement.
• Assess the overall progress on the company’s goals and development plans.
• Reevaluate the talent risk-mitigation strategies after considering the impact of the pandemic on the business and staff.
• Ensure that the senior management and HR department is fully-equipped and trained to implement modern tools and technologies to work in unprecedented situations like remote working, and proper plans have been put in place for such circumstances.
• Assess the feasibility of the current business processes and evaluate their benefits to determine any changes that have to be made in 2021.
• Ensure fairness and transparency in the organization by sharing and discussing important information with the employees and the managers to make sure all of the important organizational changes are properly communicated.

In a Nutshell

There is no doubt that auditing is one of the most important parts of any business. The challenges in auditing have increased in 2021, but companies can easily plan for it with the help of professional accounting and audit services in Malaysia. By considering the strategies discussed above, the organizations should have no major issue in conducting a reliable and efficient audit.

Since the pandemic is still a developing situation, it is necessary that companies keep visiting their audit planning to ensure that all of the changes are covered. This will ultimately result in the successful auditing of your company. For more information, feel free to get in touch with us.

The bottom line is that whether you are running a homegrown group of companies or a multinational enterprise, transfer pricing documentation must be prepared if you are involved in related party transactions. The tax authorities have in recent years made significant changes to the penalty rates, which shows their serious attempts in ensuring that companies comply with the law, especially in regards to Transfer Pricing. For more information, feel free to get in touch with us.