The coming audit season might be much different than seasons of yore.
As many companies continue to operate remotely during the COVID pandemic, audit procedures are being adjusted accordingly. Fortunately, when the pandemic hit, many accounting firms already had invested in staff training and technology to work remotely.
Key Benefits
For example, they were using cloud computing, remote access, videoconferencing software and drones with cameras. These technologies were intended to reduce business disruptions and costs during normal operating conditions. When social distancing measures went into effect in the United States around mid-March, many calendar-year audits for were already done. As we head into the next audit season, be prepared for the possibility that most procedures — from year-end inventory observations to management inquiries and audit testing — to be performed remotely.
Key Capabilities
During a remote audit, expect your accountant to target three critical areas to help minimize the risk of material misstatement:. Internal controls. Now, they must evaluate how transactions are being processed by employees who work remotely, rather than on-site as in prior periods.
Fraud and financial misstatement. During fieldwork, auditors interview key managers and those charged with governance about fraud risks. These inquiries are most effective when done in person, because auditors can read body language and, if more than one person is present during an interview, judge the dynamics in a room. Auditors may request video conferences to help overcome the shortcomings of inquiries done over the phone or via email. Physical inventory counts. Normally, auditors go where inventory is located and observe the counting process. They also perform independent test counts and check them against the inventory records.
In some cases, audit firms may be unable to perform certain procedures remotely, due to technology limitations or insufficient access to data needed to comply with all the requirements of the auditing standards. In those situations, your auditor might decide to issue a modified audit report with scope restrictions and limitations. Divorce and Taxes — 4 Issues to Consider. Tax Responsibilities When Closing Corporatoon Business.]
I can not participate now in discussion - it is very occupied. But I will return - I will necessarily write that I think on this question.