Audits of Financial Entity in COVID-19

Audits of Financial Entity in COVID-19

Image Description
Image Description
Created By Admin Last Updated Mon, 31-Aug-2020

As the cases of COVID-19 is touching new levels day by day has changed everything drastically. No one knows who get infected, when get infected, by whom going to infected and situation is continuing from the month of March-19.

Now, To the point Audit in this scenario. Many clients don’t want to get their books audited as of fear of COVID-19. Many audit firms are also may be going to audit only the entity which going to provide health-related safety to their auditor. As Audit is not superior than auditor’s health in any way or at any time. Reasonable assurance as per Standard Auditing going to suffer this year a bit. As many auditors are not in context with auditing the books at client place. They(Auditor) are demanding books of accounts of clients at their convenience to their (Auditor) place. Many queries also may be going to unresolved may be

Quality of the financial statement of entities will definitely suffer. Govt. had issued tax relaxation to business owner.

Few points I had noticed during these critical situations and which is proving a road stone in audits this year: -

1. Fear of Infection: - As Covid-19, due to its nature has increased the rate of infection by 100 multiples. As the symptoms are nor discoverable. One by not knowing about the infection can infected 2.6 person as per data official which again makes a chain and very bad infection which is again not good for both audit, auditor as well as client.

2. Health Related Cost: This pandemic has also increased the cost of Health Expense like Buy a sanitizer, masks, Increased cost of Hand washes etc. Causing business (low turnover entity) to enter very minimum number of person in their premises.

3. Paper Work in Audit: Audit includes lots of paper work as only accounts of entity know where they had kept the docs related to audit. As docs have to exchange between auditors and accounts and related person with audit increase the chance of infection.

4. Low Space in Account Departments: Entities with turnover of 4 to 5 Crore, generally, have very low space left in account department which also lead to no social distancing and it also increase the chances of infections.

Let’s hope for good, pray this pandemic created from Covid-19 will get over very soon. As per news channel or from other sources, every country is busy in developing the vaccine to cure this pandemic, and if we believe these rumors. The cure is available up-to the end of September these years.