ICAEW Insights on audit and coronavirus
4 January 2021: ICAEW’s Technical Advisory Service answer some of the most frequently asked accounting and auditing issues.
4 January 2021: Audit Wales has issued reports on the 2019-20 Welsh government accounts, extra funding provided to NHS Wales, and progress against equality objectives.
16 December 2020: The latest guide from ICAEW’s Audit and Assurance Faculty reminds auditors what to consider when determining audit materiality.
14 December 2020: Auditors are facing a perfect storm of standards and uncertainty this reporting season, from remote auditing to going concern.
8 December 2020: Sir Jon Thompson, Chief Executive of the Financial Reporting Council, answers questions on how the FRC has responded to the challenges of COVID-19, progress in audit reform, and the attractiveness of the audit profession.
Forced into remote working, with little peer support, and unable to visit client sites auditors are facing a new set of challenges.
If the government launches its consultation before Christmas a major reform agenda will come in the first quarter of 2021, says Michael Izza
25 November 2020: A review by FRC into audits conducted for 2019/20 year ends found that auditors had taken on board enhanced policies and procedures for assessing going concern.
13 November 2020: The Financial Reporting Council has encouraged companies to consider whether they should lengthen their reporting timetables for 20/21 in line with the extension to reporting deadlines
16 October 2020: The Financial Reporting Council’s Jon Thompson spoke about the drivers for and progress in audit reform, the attractiveness of the profession and the challenges of COVID-19.
7 September2020: Initial estimates have found coronavirus-related fraud could end up costing the taxpayer £4bn.
6 August 2020: Coronavirus may lead to situations where an auditor considers including an emphasis of matter paragraph in the auditor’s report.
28 July: Alison Kitchen, Chairman of KPMG Australia, says that audit teams are managing the challenges of remote audit admirably.
17 July: Widespread changes in audit practices driven by COVID-19 have accelerated trends already underway in the market.
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.
26 June 2020: ICAEW CEO Michael Izza explains the importance of going concern for auditing the effects of COVID-19, and how the Institute is supporting members with new resources.
Financial statements are prepared on basis that a business will continue to operate for the foreseeable future ie, that it is a going concern. Our guidance outlines who is responsible for ensuring that the going concern basis is appropriate, offers practical advice on how to make this assessment, and explains the implications for the accounts.
Auditors test the appropriateness of the use of the going concern basis for financial statements. Our guidance outlines auditor responsibilities for testing going concern, offers practical advice on testing, and explains the implications for the audit report.
26 May 2020: In light of the continuing economic uncertainty caused by the coronavirus pandemic, ICAEW has published guides on going concern considerations for those preparing accounts and on reverse stress testing.
14 May 2020: The Charity Commission has confirmed that it will be conducting an ongoing review of the reporting of matters of material significance by auditors and independent examiners.
11 May 2020: ICAEW’s Audit and Assurance Faculty has produced a webinar looking at accounting for and auditing revenue during COVID-19
1 May 2020: In these unprecedented times, the audit of going concern assessments and reporting on material uncertainty related to going concerns are key for auditors. The Audit and Assurance Faculty has produced two guides on the topic.
24 April 2020: as we prepare to enter a second month of lockdown, businesses face a range of extreme and diverse challenges. To help overcome these obstacles, ICAEW has produced a range of resources.
23 April 2020: the Financial Conduct Authority has announced a two-month extension for submitting regulatory returns.
21 April 2020: several key projects have taken a back seat while the accounting world tackles the coronavirus crisis, but ICAEW continues its work to influence issues such as audit reform, climate change and ESEF.
While COVID-19 will affect businesses in different ways and to different degrees, it is likely to have a significant impact on audit reports on company financial statements for the foreseeable future.
15 April 2020: the Financial Reporting Council’s Mark Babington joined ICAEW’s Audit and Assurance Faculty for a webinar to discuss key aspects of its guidance for auditors affected by coronavirus.
14 April 2020: ICAEW’s Audit and Assurance Faculty ran a webinar outlining how auditors should factor the impact of the COVID-19 pandemic into their work.
31 March 2020: the spread of coronavirus and restrictions on movement are affecting year-end inventory counts, which has implications for auditors
30 March 2020: ICAEW offers advice to both pension trustees preparing relevant accounts for section 179 valuations due on 31 March 2020, and also their auditors in light of the COVID-19 pandemic.