The coronavirus pandemic may create significant changes for auditors and for CPAs who prepare company financial reports.
The pandemic may cause significant changes for CPAs who prepare company financial reports and for auditors.
Potential disruptions to global supply chains and other business activity prompted the SEC and the PCAOB in mid-February to issue limited guidance to public companies and auditors for how they should manage their response to the pandemic.
On March 4, the SEC issued a temporary exemption from meeting deadlines that fall between March 1 and April 30 for filing annual reports, proxy statements and other regulatory documents. Companies have to explain why they need the exemption, which extended the deadlines 45 days, and refer to the SEC order in their public statements.
Fieldwork could be problematic for auditors, who may have trouble gaining access to the evidence and people they need to support their audit opinions. The most immediate effect regulators raised concerns the disclosures mandated by FASB Accounting Standards Codification Topic 855: Subsequent Events.
Review the details and steps finance personnel and practitioners can take.