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.
Scott Taylor is CEO and & founder of Perx Health, a leading engagement platform for chronic conditions.
Peter Keating is an investigative financial journalist who has been reporting complex financial stories for more than 25 years. His work has been published recently by GQ, Inc., National Geographic, New York and Politico.
Keating was a founding member of ESPN’s Investigative Unit, where his longform projects included pioneering work that exposed for the first time how the NFL dealt with brain injuries. At ESPN, Keating was a frequent commentator on Outside the Lines and public speaker, making six appearances at the Sloan Sports Analytics Conference, and was part of teams that won three National Magazine Awards. His work has also earned 10 Journalism Awards from the New York Press Club, as well as Investigative Reporters and Editors, Deadline Club and National Headliner Awards.
Keating has written four national columns: “Numbers” and “The Biz” for ESPN the Magazine (1999-2019), “The New Retirement” for Smart Money (2006-2010) and “The Advocate” for Money (1999-2000). He was the senior writer for politics at George during the 2000 presidential campaign.
Keating lives in Montclair, New Jersey, with his wife Karen, their daughters Ellie and Samantha, and their dog, Otis.
Betsy Branagan leads the reserving and claim analytics function at Xceedance. She has over 30 years of experience in traditional actuarial roles of reserving and pricing as well as expertise in leadership, strategy, data management and organizational change.
Prior to joining Xceedance, Betsy held the position as the Appointed Actuary for Plymouth Rock Assurance Company. She managed the loss reserving and pricing functions, led the integration of data from acquired entities, and implemented new reserving tools and processes. Betsy has held leadership roles at Hanover Insurance Group, Arbella Mutual Insurance Company, AIPSO, and on a number of industry committees.
Betsy is a Fellow of the Casualty Actuarial Society and a Member of the American Academy of Actuaries. She holds a master’s degree in business administration from Indiana State University’s Kelley School of Business and a bachelor’s degree in Mathematics from Clark University.
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.
