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.
Elad Tsur, chief AI officer at Applied Systems, is a serial entrepreneur who is passionate about bridging the gap between technology and business – specifically in insurance and other financial services.
Prior to joining Applied Systems in 2024, he was co-founder and CEO of Planck, where he helped create an AI-based data platform for commercial insurance that enables insurers to grow new and organic business while drastically reducing their loss and expense ratios.
Before launching Planck in 2015, Elad started BlueTail Corporation, which delivered the first comprehensive AI platform for customer relationship management. Acquired by Salesforce.com in 2012, today it is known as Salesforce Einstein.
Guy Pearson is CEO and founder of Ignition, a client engagement and commerce platform for professional services businesses. He has more than a decade of experience in professional services. He is a chartered accountant and chairman of Interactive Accounting, a progressive accounting firm he founded in 2009, and an angel investor in a portfolio of companies. He was named a 30 under 30 winner by Anthill (2014), a finalist in the Fintech Entrepreneur of the Year (2017), and listed in the NSW Pearcey Foundation - Hall of Fame.
Sean M. Cleary is the founder of The Law Offices of Sean M. Cleary, located in Miami. He helps his high net worth clients in complex family law cases along with assets and debt division by assisting them through negotiation, mediation, or trial representation.
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.
