Audits of financials, now a day, are on peak if we talk about it comparing with last financial year. But this year, AGM are already postponed, Tax audits dates are further increased to 30th Nov 2020 surely gonna extended further to the month of December. Market condition is not stable these days. Owner are thinking of whether to continue as going concern or not. Lots of loss in share market already which is recovering yet but not at that speed. Fitness Industry, Entertainment industries are suffering from huge losses. No doubt, Govt. is taking various measures. But until the vaccine or something not gonna invent, i think like situation is going to touch newer low may be. Oh God! Don’t make it happen.
But look in these scenario everything is changed. As the cases of COVID-19 is touching new levels day by day has changed everything drastically. No one know who get infected, when get infected, By whom gonna infected and situation is continuing from the month of March-19.
Now, To the point Audit in this scenario. Many clients don’t wanna get their books audited as of fear of COVID-19. Many audit firms are also may be gonna audit only the entity which gonna provide health related safety to their auditor. As Audit is not superior than auditor’s health in any way or at any time. Reasonable assurance as per Standard Auditing gonna suffer this year a bit. As many auditor are not in context with auditing the books at client place. They(Auditor) are demanding books of accounts of clients at their convenience to their (Auditor) place. Many queries also may be gonna unresolved may be
Quality of the financial statement of entities will definitely suffer. Govt had issued tax relaxation to business owner. But for these relaxation availament businesses has to get their accounts audited by the way.
Few points i had noticed during these critical situation and which is proving a road stone in audits this year:-
1. Fear of Infection:- As Covid-19, due to its nature has increased the rate of infection by 100 multiples. As the symptoms are nor discoverable. One by not knowing about the infection can infected 2.6 person as per data official which again makes a chain and very bad infection which is again not good for both audit, auditor as well as client.
2. Health Related Cost: This pandemic has also increased the cost of Health Expense like Buy a sanitizer, masks, Increased cost of Hand washes etc. Causing business(low turnover entity) to enter very minimum number of person in their premises.
3. Paper Work in Audit: Audit includes lots of paper work as only accounts of entity knows where they had kept the docs related to audit. As docs have to exchange between auditors and accounts and related person with audit increase the chance of infection.
4. Low Space in Account Departments: Entities with turnover of 4 to 5 Crore, generally, have very low space left in account department which also lead to no social distancing and it also increase the chances of infections.
Lets hope for good, pray this pandemic created from Covid-19 will get over very soon. As per news channel or from other sources, Every country is busy in developing the vaccine to cure this pandemic, and if we believe these rumors. The cure is available up-to the end of September these year.
Stay Safe. Stay Healthy. Stay Positive.”