4 key COVID-19 audit risks for 2020 year ends
4 key COVID-19 audit risks for 2020 year ends Many auditors have begun to turn their sights to their next group of audits: clients with 2020 fiscal year ends. The World Health Organization declared a public health emergency on Jan. 30, 2020, meaning many of these clients will have been affected by the COVID-19 pandemic during the period under audit. Auditing these clients will carry unique challenges, and certain areas may present heightened risks of material misstatement for the audit. Here are four such areas for auditors to consider as they prepare for their next audits of commercial entities. Internal control When states issued stay-at-home orders in March and April, many entities were presented with a new reality. As they shifted from the office environment to remote working, and as financial reporting processes moved from in-person to virtual, the risk of breakdowns in internal control was heightened. Auditors are required to evaluate the design and implementation of controls rel