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.
Gregory V. Kanarian is an investment strategist at Natixis Investment Managers Solutions, representing the firm's direct indexing and tax-managed strategies.
Prior to joining the investment strategies group he was a portfolio consultant at Natixis for 12 years. Previously, he was a portfolio consultant with Deutsche Bank and a financial planning associate with Pillar Financial Advisors. He is a CFA charterholder and is FINRA Series 7 and 66 licensed.
Yakir Golan is the CEO and co-founder of Kovrr. He started his career in the Israeli intelligence forces. Following his military service, he acquired multidisciplinary experience in software and hardware design, development and product management. For the past few years, he has focused on bringing cyber risk management solutions based on advanced machine learning and artificial intelligence to the market. Yakir holds a BSc in Electrical Engineering from the Technion, Israel Institute of Technology and an MBA from IE Business School, Madrid, Spain.
Julienne Y. Joseph is the founder and principal of JYJ Consulting, and is the former Chief of Staff to HUD Secretary Marcia L. Fudge. She previously served as Deputy Assistant Secretary for Single Family Housing.
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.
