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.
Kate Ryder is the founder and CEO of Maven, a virtual clinic dedicated to women’s and family health. Named one of Fast Company’s “10 Most Innovative Healthcare Companies in 2018,” Maven’s family benefits platform aims to advance women in the workplace and make it easier for parents to start and grow a family during a critical time in their careers. Maven was founded in 2014, operates the largest proprietary women’s and family health telehealth network in the country, and has raised more than $40 million in capital from top investors including Sequoia and Oak HC/FT.
Ritesh Patil is the co-founder of Mobisoft Infotech, a company that helps startups and enterprises in mobile technology. He loves technology, especially mobile technology. He works in a leading mobile app development company with skilled Android and iOS app developers that have developed innovative mobile applications across various fields such as finance, insurance, healthcare, entertainment, productivity, social causes, education and many more. He has earned numerous awards for his work.
Jack Freund is director, cyber risk management, for TIAA, a member of the CRISC Certification Working Group, coauthor of Measuring and Managing Information Risk, a 2016 inductee into the Cybersecurity Canon, a IAPP Fellow of Information Privacy, and ISACA’s 2018 John W. Lainhart IV Common Body of Knowledge Award recipient.
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.
