COVID-19 Resource: Key auditor and audit committee considerations
Jun 16, 2020
Review these articles on auditor and audit committee considerations during the pandemic
CAQ COVID-19 Resource: Key auditor and audit committee considerations
This resource is intended to provide high-level financial reporting considerations for auditors and audit committees as certain audits near completion, quarterly reviews are occurring, and during planning for 2020 audits. This resource is also, intended as general information and should not be relied upon as being definitive or all-inclusive. The CAQ encourages audit firms and audit committees to refer to the rules, standards, guidance, and other resources in their entirety.
SEC Regulation S-X specifies that the interim financial statements included in Form 10-Q must be reviewed by an auditor in accordance with PCAOB standards. PCAOB Auditing Standard 4105, Reviews of Interim Financial Information establishes standards and provides guidance on the nature, timing, and extent of the procedures to be performed by an independent auditor when conducting a review of interim financial information. The general standards related to independence, training and proficiency and due professional care also apply to auditors conducting interim reviews.
COVID 19: Considerations for internal controls over financial reporting
The COVID-19 pandemic poses unique and novel challenges to publicly-traded retailers, particularly with respect to design and testing of both internal controls over financial reporting and disclosure controls and procedures. We recommend that retailers assess what has changed in the current financial reporting environment, consider whether existing controls are sufficient to prepare financial statements and disclosure documents at the reasonable assurance level, and determine what new controls (if any) are necessary to reduce the risk of errors and fraud.
Leveraging AI to battle this pandemic — And the next one
An alternative approach for policy makers to consider adding in their mix for battling Covid-19 is based on the technology of personalized prediction, which has transformed many industries over the last 20 years. Using machine learning and artificial intelligence (AI) technology, data-driven firms (from “Big Tech” to financial services, travel, insurance, retail, and media) make personalized recommendations for what to buy, and practice personalized pricing, risk, credit, and the like using the data that they have amassed about their customers.