IAASB addresses pandemic issues in audit practice alert

The International Auditing and Assurance Standards Board (IAASB) published a staff audit practice alert Friday that is designed to highlight key areas of focus for auditor reporting related to the coronavirus pandemic.

The alert highlights potential implications for auditor and interim review reports related to the pandemic that include:

• Modifications to the auditor’s opinion due to material misstatement of the financial statements or an inability to obtain sufficient appropriate evidence.
• Material uncertainty related to going concern.
• Inclusion of key audit matters and/or emphasis-of-matter paragraphs.
• Reporting implications for interim review engagements when the auditor of the financial statements also is performing the interim review.

The guidance in the audit staff practice alert does not amend or override the IAASB’s International Standards on Auditing or its International Standards on Review Engagements. Instead the alert is intended to help auditors focus on the potential effects that pandemic-related volatility and uncertainty may have on the auditor’s report.

— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.