AUDITING IN A COVID-19 ENVIRONMENT The Only Constant is Change By Daniel Bringhurst, CPA
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t Larson & Company, one of our core values is “Deep change is constant. Deep change comes from changing ourselves, not others.� While this statement rings true for me, 2020 has solidified the importance of this value more than ever. It has been a year which has challenged the status quo of the accounting profession, allowed for growth and improvisation, and served as a preview into the future of the profession. These challenges have impacted nearly every industry, and public accounting has been no exception.
Remote Auditing
The concept of remote auditing has been practiced by some auditors and auditees in various industries for a while but has been forced into large-scale adoption due to the ongoing pandemic. With travel restrictions, public health mandates, and other local government responses, the traditional face-to-face audit of the past is no longer possible for most organizations. These limitations initially led to the question of whether a fully remote audit would be permitted under the professional standards. The quick answer to this question is yes, if all parties have the necessary technology infrastructure in place. Auditors must continue to be mindful of the relevant auditing guidance, ensuring that they are obtaining sufficient appropriate audit evidence through a remote auditing environment.
Changes to Auditor Tools
COVID-19 has drastically changed the status quo for auditors and the way they are accustomed to operating. Historically, working in an auditing department at a public accounting firm has included things like working around a conference table, whiteboard discussions, banter with co-workers about sports and other topics, and having the ability to interact with clients face- to-face on a daily basis. One of the primary tools used to replace these things is video conferencing through services such as Zoom, Microsoft Teams, and GoToMeeting. While these services cannot entirely replace the value of face-to-face interaction, they have been a valuable tool for auditors and other professions during this pandemic. During the pandemic, we have all likely heard screaming children, dogs barking, and other embarrassing things you might not ordinarily see from a standard conference room setting. Personally, I have enjoyed getting to work and collaborate with colleagues in a more personal setting than what we are used to in the profession. Having this opportunity to learn more about a colleague’s hobbies, family, remote schooling challenges, etc. in a home setting has increased a sense of teamwork and contributed to positive camaraderie with fellow co-workers during these difficult times.
Impact on Teams
One of the unforeseen challenges that auditors have
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the journal entry | October 2020
