IAASB releases COVID-19 related guidance for auditor reporting

IAASB releases COVID-19 related guidance for auditor reporting

• 27 May 2020
• Accounting
• South African Accounting Academy

COVID-19 has led to unpredictable circumstances, and auditors of entities affected by these conditions will need to focus on the potential impacts for auditor and interim review reports, which are used to communicate audit opinions or review conclusions, respectively, to intended users.

In the current evolving environment, COVID-19 may have led to volatility and possible material uncertainties, and the following potential implications should be considered by the auditor/independent reviewer:

• Modifications to the auditor’s opinion due to material misstatement of the financial statements or an inability to obtain sufficient appropriate audit evidence;
• Material uncertainty relating to going concern;
• Inclusion of key audit matters (KAMs) and/or emphasis of matter (EOM) paragraphs; and
• Reporting implications for interim review engagements, when the auditor of the financial statements is also performing the interim review.

Click here to download the alert.

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