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.
Emily LeStrange, CFA, CFP®, is the head of Vanguard Personalized Indexing. LeStrange's team is responsible for the strategy, service and distribution of Vanguard's personalized indexing offer for financial advisors.
Prior to her current role, LeStrange was a senior investment director on Vanguard's Manager Oversight and Search team. In this role, she was responsible for the continuous monitoring of a subset of Vanguard's 25 independent active equity investment managers, Vanguard's Equity Index Group and Vanguard's Quantitative Equity Group on behalf of Vanguard's Global Investment Committee and the board of directors. Previously, she held roles in Vanguard's Flagship Services, Investment Management Fintech Strategies and Corporate Strategy groups.
LeStrange earned an MBA from the MIT Sloan School of Management and a bachelor's degree in American Studies and Political Science from the University of Notre Dame. She is a CFA charterholder and is a member of the CFA Society of Philadelphia.
Corey Tucker is the Director of Innovation and Senior Product Manager at commute management platform RideAmigos.
Julie A. Hill is the Alton C. and Cecile Cunningham Craig Professor of Law at the University of Alabama.
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.
