The Impact of COVID-19 on Audit Practices and Auditors: An Analysis of Global Contributions

Author

Ahmed Helmy Gomaa
Ehsan Saleh Almoataz

Abstract

The purpose of the study: Explain the impact of Covid-19 on the practice
of auditing and auditors by Describe, analyzing and evaluating the global
contributions of organizations, bodies, institutes, companies and global audit
offices and in light of the application of ISAs and the circumstances of the
pandemic.
Design / Methodology / Approach: This study has relied on the use of the
deductive inductive method whereby the study examines most of the audit issues
affected by the Covid-19 pandemic through Describe, analyzing and evaluating the
reality of studies, pamphlets, alerts and memorial messages issued by organizations,
bodies, institutes, professional councils, companies and global auditing offices, with
the aim of deriving results to develop audit practices and the work of auditors in
Light of ISAs and pandemic conditions which will likely last longer.
Findings: Descriptive analysis of the ISAs affected by the pandemic, and its
implications for the auditors’ work revealed that there is a very important impact
of the COVID-19 pandemic on the auditor’s professional judgment, especially
with regard to the evaluation of the management assessment of the entity ability
to continue, and auditing the reasonableness of management’s assessment of
accounting estimates due to great uncertainty and the inability to Expecting
future cash flows, in addition to professional skepticism due to the potential for
fraud resulting from the economic downturn and low income, and perhaps
failure to implement contracts and agreements due to the decline in production,
and there is an important impact of the pandemic on audit evidence, in particular
(attending the actual inventory count – group review – documentation) Because
of the travel restrictions (social divergence) and the use of technology, all of the
above is overshadowed to make the development of the audit program and the
identification and evaluation of the auditors for risks more difficult, and even
more complex, the content of the audit report, While the subsequent events for
the auditor’s report least affected by the COVID-19 pandemic.
Originality / value: This paper sheds light on the current and expected
effects of the Covid-19 pandemic on the most important audit practices and
auditors’ work by Describe, analyzing and evaluating the global professional
contributions of organizations, bodies, councils, institutes, companies and global
audit offices since the time of the pandemic at the end of 2019 and beginning of
2020 – until now – and in light of the application of ISAs issued by the IAASB.

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