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.
Sharon Cornelissen if the director of housing at the Consumer Federation of America.
Marcin Nowak is the founder of Decerto, a company specializing in providing software solutions for automating the work of insurance agents. A graduate of computer engineering and postgraduate MBA studies. Creator of the Higson software – a business rules engine. He has been associated with the insurance industry for over 20 years, specializing in automation, the impact of technology on the insurance sector, underwriting, and management. A proponent of the smart insurance technology concept.
Nancy Germond, MA, ARM, AIC, ITP, SPHR, SHRM-SCP, is Executive Director, Risk Management and Education, for Big 'I' national.
Nancy is a second-generation insurance professional and an accomplished risk and claims manager. As the Executive Director of Risk Management and Education at the Big I, Nancy has authored scores of risk-management related articles and presents to organizations like the Public Risk Manager Association (PRIMA), claims associations, and the Society for Human Resources. She is also the author of Workers' Compensation in Two Hours, a book geared toward small business owners and new insurance agents who want to learn more about this important coverage.
Nancy graduated with honors from Mills College and earned her Master's in Sociology from Lincoln University. She holds the Associate in Risk Management designation, the Associate in Claims designation, and is a certified Insurance Training Professional. Nancy also holds the prestigious Senior Professional in Human Resources designations.
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.
