The staff of the American Institute of CPAs, the International Ethics Standards Board for Accountants and the International Auditing and Assurance Standards Board have jointly released guidance on the use of specialists in COVID-19 environment, including some considerations involving the use of specialists when auditing financial statements during the pandemic.
The staff guidance, released Tuesday, aims to help accountants and auditors determine when there might be a need to use the services of a specialist to help them perform specific tasks and other professional activities within their own organizations, as well as when they serve their clients during the COVID-19 pandemic. The publication discusses some of the ethical considerations for accountants to think about when using a specialist, along with some of the circumstances that indicate a need for a specialist when auditing financial statements.
The novel coronavirus pandemic has forced many accountants and auditors to work remotely, as well as curtailed travel to client locations, particularly those located abroad, when travel restrictions remain in place in many countries.
Jason D. Turner is the Founder, President, and Chief Executive Officer of Venbrook Group, LLC. He is responsible for corporate leadership of the risk management, insurance and reinsurance broking firms, as well as developing and implementing core strategy, building infrastructure, and establishing the Venbrook vision and values systems. From modest origins as the sole proprietor of a retail brokerage, Turner has led Venbrook through a series of successful transitions and acquisitions.
Samara Cohen, senior managing director, is BlackRock's chief investment officer of ETF and index investments and a member of the firm's global executive committee.
Pat O'Donnell is chief executive officer of iPipeline. He joined the organization in November 2023, bringing robust industry knowledge and expertise to the role, including extensive experience in leading and overseeing software company operations, sales, and engineering.
O'Donnell joined iPipeline from Ministry Brands, the leading provider of software and services for faith-based, non-profit, and other purpose-driven organizations, where he led the organization as chief executive officer. In this role, O'Donnell played a key role in the company's success and oversaw a period of transformation and growth.
His experience includes serving as senior vice president, and later as president, of FLEETCOR, an Atlanta-based leading global business payments company.
O'Donnell also held roles of increasing responsibility during his nearly 24 years with ADP, a member of the Fortune 500 and global technology company providing human capital management solutions, including as senior vice president and Division Vice President of Major Accounts.
The guidance points out that the pandemic could also pose threats to ethical standards, and accountants may find it challenging with the changing laws and regulations pertaining to COVID-19. They may come under pressure to breach the principles of professional competence, due care and professional behavior. “Those who perform audits of financial statements may face additional challenges as well, including considerations related to auditor independence,” said the document. During the pandemic, accountants also might not have access to the usual resources they have at their offices to ensure competent performance, and they may need to turn to outside specialists to help them perform certain tasks or undertake some engagements.
The publication was developed by the staff of the AICPA under the auspices of a working group formed by the IESBA and national ethics standard setters from Australia, Canada, China, South Africa, the U.K. and the U.S. The working group was chaired by IESBA deputy chair Richard Fleck with the goal of developing implementation support resources to help accountants effectively apply the International Code of Ethics for Professional Accountants (including International Independence Standards) when facing circumstances created by the COVID-19 pandemic. IESBA and IAASB staff also provided their input. The working group plans to develop more COVID-19 guidance in the weeks ahead.
