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.
Karl is a Partner leading the US Insurance Practice team at Artefact. Karl has a passion for the power of data, technology & AI to shape the future of Insurance. With 20+ years of Insurance data, technology, and operations experience, he has worked extensively with industry leaders to scale AI, customer experience, digital and automation for the world's largest financial services organizations. His professional experience ranges across brokerage, wholesaling, management consulting, and executive leadership, offering clients a unique level of experience-led insight. Karl is also an author and industry speaker - sharing insights on the trends that shape digital transformation, analytics innovation, and leading-edge customer experiences.
Roch Monnig, CFP, is a wealth advisor at Burney Wealth Management, one of the first registered investment advisor firms in Virginia, which encompasses a range of services including financial planning, investment management, tax planning, estate planning and retirement planning.
Monnig earned his bachelor's degree from the University of Tennessee, Knoxville in 2016 and became a certified financial planner in 2018.
Arun Balakrishnan is CEO of Xceedance, a global leader in delivering insurance-focused consulting, technology, operations, and data solutions to many of the world's largest P&C insurance organizations. He has more than 15 years of experience launching and leading start-ups in the insurance sector. He is passionate about promoting innovation and transformation in the insurance industry, which he believes to be a key element of societies and economies.
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.
