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.
Bill Curtis, CPA, is partner-in-charge of the Birmingham office of Mauldin & Jenkins CPAs & Advisors and leads the firm’s efforts in Alabama. He joined Mauldin & Jenkins in 2004, after working for AmSouth Bank and Cade and Associates. He has over 15 years of auditing and consulting experience. As a partner in the firm’s Financial Institutions practice, Curtis specializes in opinion audits and tax services for private as well as SEC registered companies, internal control opinion audits, and internal audits, and benefit plan audits. In addition to serving his financial institution clients, Curtis is responsible for auditing numerous 401(k) and employee stock ownership plans (ESOPs). He serves on the firm’s Leadership and Career Development Committee and LEAP Conference Committee. Curtis is a CPA in the states of Alabama and Georgia. He is a member of the American Institute of CPAs, the Alabama Society of CPAs, the Georgia Society of CPAs, Birmingham Young CPAs, Alabama Banking School faculty, and he serves on the board of directors for Community Kitchens of Birmingham.
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.
