This Know-How guide from ICAEW’s Audit and Assurance Faculty provides some considerations for auditors when assessing the risks of fraud in relation to COVID-19 government support schemes.

COVID-19 is having a profound effect on many businesses and we can expect to see this continue into future financial reporting periods. Whether businesses are experiencing a temporary downturn as a result, or more radical changes, COVID-19 is likely to impact how materiality in audits is determined by auditors and the choice of benchmarks used.

This Know-How guide from ICAEW’s Audit and Assurance Faculty covers what irregularities are, how the requirements have changed in ISA (UK) 700 (Revised January 2020), what should be reported on in the auditor’s report, and how COVID-19 may impact what is reported.

An auditor may conclude that a matter disclosed in the financial statements is so important that it is fundamental to users’ understanding of those financial statements. In this case an emphasis of matter paragraph will be included in the auditor’s report, which draws the reader’s attention to the entity’s disclosures.

Many auditors are working from home during the COVID-19 lockdown, and this presents logistical challenges for the signing of the auditor’s reports on financial statements.

This Know-How Guide from ICAEW’s Audit and Assurance Faculty considers a selection of frequently asked questions about auditing remotely in light of the coronavirus pandemic. It may be updated or extended from time to time in response to events and member feedback.

Interim reporting by listed companies will be of particular interest in 2020 to a range of stakeholders, including investors and other users of company accounts who want to understand the impact of COVID-19 on business performance and prospects. This guide developed by ICAEW’s Audit and Assurance Faculty is designed to help users to better understand the role of auditors in relation to such interim reports.

24 February 2021: This month’s top technical stories on ICAEW Insights include updates on self assessment penalties, IR35 changes and a major change to the government’s Kickstart Scheme.

16 February 2021: The double whammy of Brexit and COVID has prompted an important focus on approaches to audit that could prove beneficial to auditors and clients alike.

10 February 2021: Reporting season might have been complicated by COVID but, says Joe Scaife, Head of Audit and Assurance at Bishop Fleming, you can achieve the same objectives in different ways.

1 February 2021: The Financial Reporting Council and the Financial Conduct Authority have published updated guidance for companies and auditors to ensure high-quality financial information continues to flow to users to support decision-making.

ICAEW’s Audit and Assurance Faculty shares a recording of its recent webcast which introduces reverse stress testing as a technique a wide range of entities could use to help make going concern assessments more robust, and to enhance risk assessments.

ICAEW’s Audit and Assurance Faculty shares a recording of its recent webcast on the challenges faced when auditing going concern in light of the COVID-19 pandemic.

ICAEW’s Audit and Assurance Faculty shares a recording of its recent webcast looking at the challenges in accounting for and auditing revenue as a result of the COVID-19 pandemic.

ICAEW’s Audit and Assurance Faculty shares a recording of its recent webcast which discusses the FRC’s March 2020 COVID-19 Bulletin.

ICAEW’s Audit and Assurance Faculty shares a recording of its recent webcast looking at the challenges faced by auditors due to the spread of coronavirus: attendance at client sites, stocktakes, valuations, group audits and reporting dates.

Consolidated and updated guidance issued by the FRC providing a list of factors that auditors should be considering when carrying out audit engagements in the current circumstances, along with guidance on how they might be addressed. This guidance supersedes previous versions.

Collection of all the updates and guidance issued by the UK Financial Reporting Council (FRC) for companies, auditors and preparers of financial statements in response to the coronavirus.

FRC review of going concern assessments performed by the seven largest UK audit firms, highlighting best practice in a number of key areas relating to policies and procedures implemented in response to COVID-19 related risks.

The FRC has published further guidance on modified auditors' opinions and reports during the coronavirus crisis. The guidance summarises when audit opinions may be modified as a qualified opinion, adverse opinion or disclaimer of opinion. It also lists additional disclosures in the Independent Auditor;s Report which are not modifications of the opinion.

FRC guidance on audit issues arising from the Covid-19 (Coronavirus) pandemic.

Financial Reporting Council (FRC) guidance for companies on disclosure of risks and other reporting consequences arising from the emergence and spread of Coronavirus (COVID-19).

A collection of resources, assembled by the International Auditing and Assurance Standards Board (IAASB), to help the accounting community navigate some of the challenges ahead. The resources include Staff Audit Practice Alerts on auditor reporting, subsequent events and going concern.

Resources from IFAC collecting together guidance on key audit challenges and implications from COVID-19 on professional judgment and professional skepticism, planning‒risk identification and assessment, audit evidence, auditing accounting estimates, going concern, auditor reporting, and subsequent events. It also includes links to general resources from national bodies and regulators.

The International Forum of Independent Audit Regulators (IFIAR) is compiling and sharing public information relating to the ongoing COVID-19 pandemic on this dedicated page. Information is organised by country in sections covering announcements about regulators' operations, audit, financial reporting and filing deadlines, AGMS, and IFIAR news.

Updates from the US Public Company Accounting Oversight Board (PCAOB), including details of the inspections relief period available for PCAOB-registered audit firms.

To help counteract the negative impact of coronavirus (COVID-19), Accountancy Europe is collecting all resources relevant for European professional accountants and they will keep adding to the list. It includes guidance from member bodies (organised by country), as well as information from public authorities and firms.

Factsheet produced by Accountancy Europe giving analysis of guidance for European auditors. It highlights obtaining audit evidence, auditor's assessment of going concern, and auditor's reporting as key areas to consider.

Statements and other documents issued by the European Securities and Markets Authority (ESMA) offering guidance on corporate disclosure, audit, benchmarks and transparency during the coronavirus pandemic.

The Committee of European Auditing Oversight Bodies (CEAOB) has issued a statement highlighting important areas for the performance of ongoing audits: obtaining of sufficient appropriate audit evidence, going concern, subsequent events, and reporting and communication.

Publication from Accountancy Europe discussing the effects on accounting and reporting for companies as of 31 December 2019 and for companies with year-ends in 2020, effects on auditing financial statements as of 31 December 2019 and beyond, and practical implications for the audit of financial statements.