Question

1. Describe challenges faced by audit professionals due to COVID –

2. What modifications need to be done to audit approaches to reduce the impact of COVID-19?    

Answer 1

1. Challenges faced by Audit professionals due to Pandemic are as Follow:

- Physical Inventory valuation

- Accessing Client reocrds

- Understanding and Testing of Control

- Forecasting related to Going COncern

- Obtaining Management Representation

- Performing Subsequent Event procedures

2. Modification requiiste in Audit Approaches are as follow:

- Pandemic leads to lock down of physical presence but not of Technology, cameras accessibilty will to some extent restrict the movement of the goods and accordingly put a control to some levels.

- Secondly where Records are maintained in physical then confirmation on once resume of movement is possible in market, then verification can be done.

- Understandability and internal control effectiveness where documentation proof is mandatory for the same to determine the understandability and effectiveness, it is advisable to determine the controls inbuilt in organisation is enough to control the risk of material misstatement or not..

- Mangement representation or third party confirmation in the electronice mode is sufficient provided to ensure the autheticity of the origion of data need to be reviewed.