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.
James joined Vertafore in 2017 to lead Corporate Development and Strategy, shepherding the company through major acquisitions and a transition in ownership to Roper Technologies. After 3+ years of steering our growth in that role, he now oversees the Product Management organization as Chief Product Officer. With extensive experience in strategy, technology, and insurance, James and his team are driving Vertafore’s leadership position in Insurance Technology.
Previously, James was a strategy consultant at McKinsey & Company in its Seattle, New York, and San Francisco offices, supporting companies in developing their strategic visions and executing commercial strategies, with a focus on financial services. James also served in a variety of finance and strategy roles in the telecommunications industry with Telus Communications, a leading Canadian telecommunications company.
Sarah E. Adkisson, Esq., is a senior tax law analyst at Corvee, a software and solutions company serving tax and accounting firms. At Corvee, she works as part of the team that develops and maintains the Corvee tax planning software.
Nathan McCauley is the CEO and co-founder of Anchorage Digital in San Francisco.
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.
