The international audit standard setter is highlighting areas of focus in an evolving audit environment, including evidence, quality control policies, professional scepticism and risk of fraud and error
In its latest staff audit practice alert, the International Auditing & Assurance Standards Board is drawing attention to a number of key areas of the audit process that will be affected by the Covid-19 crisis.
It says that auditors will have to adjust how they obtain sufficient appropriate audit evidence on which to base the audit opinion, amid challenges relating to, among other things, access to people or information, revising the identification and assessment of certain risks of material misstatement, and changing planned audit procedures or performing alternative or additional audit procedures as may be appropriate.
It adds that changes in how, and where, auditors are undertaking their work may necessitate firms to respond to the changing environment, for example by considering quality control policies and procedures relating to direction and supervision of engagement teams and the review of their work.
And the Board warns that at the engagement level, auditors should have heightened awareness of the possibility of fraud or error, including fraudulent financial reporting, with the importance of the exercise of professional scepticism top of mind in performing audit procedures.
For more details go to the IAASB Staff Audit Practice Alert March 2020