Mitigating accounting fraud risk during the pandemic

The COVID-19 pandemic brought with it economic downturn forcing businesses to compete with fewer resources and major operational hurdles. Historically, economic downturn yields more accounting fraud: Old fraud is uncovered amid heightened financial scrutiny while the conditions for new fraud flourish. Businesses must be careful in preparing their financial statements and consider risk-mitigation strategies to curtail accounting fraud in three key coronavirus-impacted areas: disclosures, revenue recognition, and impairment.

Read the full posting in the Harvard Law School Forum on Corporate Governance, co-authored by AlixPartners Managing Director Meaghan Schmidt with Ropes & Gray Partners Colleen Conry and Jeremiah Williams.