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.
Mike Hicks is chief marketing officer at Beezy.
Heath Shackleford is the founder of Good.Must.Grow. a socially responsible marketing consultancy and Certified B Corp. He is a two-decade veteran of the wellness industry and a social entrepreneur who has led national research on conscious consumerism and purpose-driven behaviors. Over the course of his career, he has worked with leaders in healthcare, nonprofits and socially conscious businesses to innovate for a better world. He is also a frequent contributor to Fast Company and active with a variety of charitable causes, ranging from addiction to homelessness to social justice.
Sara Martin is CEO of WELCOA. Her purpose is helping people fulfill their highest potential in work and life through corporate health promotion. She has launched award winning wellness programs, created new wellness products, and engineered work environments to create cultures of health across multiple industries. She has been a session and keynote speaker at a variety of community and national events including National Health Enhancement Research Organization (HERO) Conference, the Art and Science of Health Promotion Conference, and the National WELCOA Training Summit. She sits on the Johns Hopkins Mental Health in the Workplace Advisory Council and the CDC Workplace Health Resource Center Steering Committee.
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.
