The effect of Brexit and COVID-19 on imports and exports, the location of staff, increased risks around fraud and estimate and forecast accuracy all affect auditing. Faculty resources are a valuable asset in understanding the problems.
The potential impact of post-Brexit risk factors should not be underestimated. The end of the Brexit transition period has resulted in significant changes to how businesses operate. Combined with the impact of the global pandemic, this can present unique challenges for auditors. To assist members during the 2020/21 reporting season, the faculty has developed new and updated resources (see Update on Brexit risks, below).
For many in business and practice, the risk landscape may be looking more cluttered than ever before. There are many practical risk factors for auditors to consider, affecting both how their firm operates (there is a link to our ‘Brexit checklist’, see right) and the practice of audit. Brexit and pandemic developments have influenced economic risk factors, risks that are specific to each entity, industry and sector, and financial reporting risks.