Impact of COVID-19 on assurance engagements

Job planning and scheduling:

Many companies had no access to their offices and the supporting documents that they needed to complete our work.  This had a knock-on effect on our planning for the year.

• We’ve rescheduled as many jobs as possible;
• Teams are working around the clock to ensure that we complete all work on time; and
• We commit to keep you updated on any changes in our year planner.

Lockdown regulations:

Government has very strict rules to prevent the spread of COVID-19.  This means that we may not be able to perform the audit/independent review at your premises.

• We have been moving towards a more online platform well before lockdown, and the majority of our staff have been working remotely since the start of lockdown, and still are;
• We are utilising our IT processes to obtain information from you as effectively as possible; and
• Where we do visit your offices, our teams are following our very strict regulations to prevent the spread the virus.

Going concern:

As the impact of lockdown regulations on the economy are still ongoing, there may be uncertainty around your company’s ability to continue as a going concern in future.  Some businesses are still not allowed to operate under level 2 of the lockdown, and it is uncertain at which point they will be allowed to operate again.  This means we have to do a bit more work around going concern.

What we do to assess the risk relating to going concern:

• Review management’s forecasts and assess whether management estimates are reasonable and whether they indicate that the entity will continue as a going concern in the foreseeable future;
• Review management’s plan for action to resolve/remedy the going concern problem;
• Review the latest financial information;
• Consider any pending litigation or claims against the company; and
• Review current liabilities of the client to determine whether the company can settle debts as they become due and payable.

What we need from you:

• A summary of how your business was impacted by the lockdown; and
• Your plan of action to mitigate the impact of the lockdown on your business, e.g. your strategy to cut costs, renegotiation of loan repayments, etc.

We are working as effectively as possible to ensure the work does not result in unnecessary additional fees.

The COVID-19 pandemic and resulting nationwide lockdown is a major event, which requires disclosure in your financial statements.

Our technical team have drafted wording to ensure that we can quickly include the disclosure required, without unnecessary cost to you.