06 Apr 2021 Ankit Chadha

What Are The Key Issues Faced By The Audit And Assurance Industry During COVID-19 And Beyond

Audit And Assurance |TRC Corporate Consulting

As the pandemic stretches and the end doesn’t seem to be near, it has taken a toll on the efficiency of auditing and assurance services. This tough time has proved to be challenging for the auditors. However, they are trying to develop creative alternatives and manage everything in the best way possible. For quality audit assurance functions, inspections, and face to face meetings used to play an important role, which is put on hold due to COVID 19.

Audit and assurance are intricately related. The auditors’ job involves audit assurance and giving recommendations and suggestions for future actions while taking into consideration all aspects. Few critical aspects involve prevailing economic conditions, available finances with the company, current company circumstances, etc.

With the advent of COVID 19, nothing is inevitable, and therefore, no predictions can be made in advance. Even if companies work out a few predictions, it is very doubtful that they’ll work out at the time of execution.

The Key Issues: Audit and Assurance Landscape 

To cope with the challenging times and give quality audit and assurance, the audit assurance firms are tirelessly working to adapt to it, and they will certainly get hold of it. They try to identify the associated risks and devise responses to develop the best alternatives to effectively carry the audit and assurance process.

Being consistent and aligned to the standards will prove to be worthwhile and logical to deal with this. Considering the current situation, having a more communicative and collaborative environment is the key to success.

Key issues being faced by auditing and assurance services providers are:

  1. Performing Audit Procedures Remotely 

A quality control audit and assurance services always involve fieldwork, which is not a feasible and practical idea during the pandemic. Performing quality control audit procedures remotely is quite a challenging task for them.

  1. Going Concerned 

It is an accounting term used for a financially stable company and will continue for a foreseeable period and will not liquidate in near time. But, after being hit by COVID 19, the future has become unpredictable due to the unprecedented changes taking place. Amidst all this, a substantial doubt might arise about whether the company will be able to continue as a going concern or not.

If you avail of auditing and assurance services from TRC Consulting, you can get a plan to alleviate substantial doubt, which is a challenging task for now.

  1. Emphasis of Matter 

It is a paragraph included in every auditor’s report, and it is of high importance, which can’t be kept away from any stakeholder. This includes all the necessary information towards which a user’s attention needs to be drawn.

Due to the ongoing pandemic, it isn’t easy to analyze if this particular statement will be valid for a client or not, which will depend on their current circumstances. After that, they give their judgment.

  1. Scope Limitations 

Usually, the strategies and decisions have a broader scope and can be used for a certain period. One of the significant challenges of COVID 19 is that of scope limitations. Along with any strategies provided, there are limitations attached to even being of any importance after some time.

The consequences of scope limitations can be pervasive or material. Pervasive is when it is not confined to the elements of high importance and does not have a substantial proportion. Material scope limitation proves to be a qualified opinion.

  1. Risk and Uncertainties 

The risks and uncertainties should be evaluated and calculated. And events that might significantly affect the amounts of financial statement or near-term working of the entity should be explicitly mentioned.

With COVID 19 being in power, it would become necessary for some companies to research and give disclosures regarding the uncertainties attached to COVID 19, which might affect the amounts and estimates.

Qualities That A Successful Quality Assurance Auditor Must Have 

  1. Good Leadership Skills 

They analyze the behavior of decisions and advise them on the same. A quality audit and assurance auditor should be able to influence even the highest levels of an organization too.

  1. Not Being Self-Conscious 

A professional audit and assurance auditor prioritizes objectivity. And they should evaluate everything against the set objectives and standards. After that, they notify the management if anything goes wrong.

  1. Persistence 

For keeping up with the ever-evolving business landscape, a quality assurance auditor tracks the recommendations and suggestions, if they are performed rightly or not, rather than leaving it right after that auditing.

  1. Creativity and Diplomacy 

For being a successful quality assurance auditor, they need to be creative and innovative with their ideas. Apart from that, sometimes, they need to take steps like whistleblowing, which involves a high diplomacy level.

  1. Efficiency at Building Relationships 

Quality assurance auditors need to skillfully communicate things and get work done in the right way. Also, suppose there’s a lack of communication. In that case, the recommendations might not be conveyed correctly, thus hampering the work.

Why Will it Be Worthwhile to Avail Audit and Assurance Services from TRC Consulting? 

With the ongoing pandemic, it might get cumbersome for the internal audit quality assurance team to be aware of the several forces acting simultaneously and keep up with a highly dynamic environment. At TRC Corporate Consulting, we are putting in arduous efforts with a team of experts who understand the value of professional standards and are coping with the changing times.

After working with several clients across various industries for auditing and assurance services, and other financial services, we have gained profound experience handling such functions. And to subsist with the challenges of COVID 19, our auditors have been working to formulate strategies to devise flexible audit and assurance plans, which will prove to be of key importance.

Are you considering availing of the best audit and assurance services for your business? Contact us for your query!