Convid – 19 Impact on Economy, Banks and Accounting
With Epidemic like Convid – 19, World economy is bound to go down as it has been in past epidemics. thou this time scenarios are worse than before and such time demand stronger efforts, my views might be to strong but then so is Convid – 19.
On economic Front lot has to be done not just stimulus and packages but a constant review and dynamic Implementation of policies, I have not seen in my lifetime such a lockdown condition all over world. It is assumed that more than Convid – 19, people will be die because of ill Economic Conditions.
Though the time is not to blame someone/ our something for the Convid -19, but a rational approach towards investigating the defaulters are must some forensic accounting must be done, not just to penalize but to establish wrongdoers if any so that the same mistakes are not repeated.
I further would emphasis on Increasing the using technology and automation in critical processes and business so that Continuity should not be hampered.
We will need greater spending on public welfare and upliftment of small business as well as public projects to cope up with the recession.
This year we should not be focused on decreasing Fiscal Deficit but more focused on getting the economy on track, we also need to start focusing on Research and development as a critical area for the economy, As currently we are one of the least spender on R&D in the world.
Banks will take a toll on their books as there will be many stress funding is this distress times, just to save the industries and jobs the government might have to pump in huge investments in the renewed 8 public sector banks.
Investments in India might grow at all time high if we survive this epidemic without as many casualties as in western countries or even china, we may become the next china for trade.
Now Coming to Our Beloved Subject of Accounting and Auditing: The Changes in Accounting and Auditing will be huge, real time auditing and cloud accounting will take over the reign of 2-decade old accounting systems and many decade old year end verifications.
Auditing will turn out to be more and more independent and rigorous than ever before because of the downfall in economy people trying not to show actual picture of financial statements to the bankers and Investors, We will have to develop such deep learning of Clients Business, Analytical skills and Impact Analysis, Normal Audit Techniques will work but with these skills we can Dive Deeper and save the stakeholders interests as well as ourselves.
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