We currently live in extraordinary times, the way that the COVID-19 has impacted our lives has been swift and far reaching, but there have been a number of announcements made in recent weeks aimed at providing some form of clarity and guidance for accountancy and audit firms. In addition, some measures have been introduced which could aid firms and their clients.
Ability to delay work
Many audit firms rely on physically visiting an audit client in order to obtain sufficient, appropriate audit evidence. Although technology has advanced in recent years and, in many cases, audit evidence can now be obtained remotely without the need to visit an audit client, it may be the case that the disruption caused by COVID-19 is too great, and the best option may be to delay the work until such a time that the restrictions are more relaxed. The options available in relation to this are outlined as follows:
- Companies could apply for a 3-month filing extension
- Companies could also consider extending their accounting reporting period
Note that listed companies have been given an additional 2 months to file financial statements plus there have been other announcements affecting listed and larger companies surrounding gender pay gap reporting.
For more detailed COVID-19 guidance, attend one of our Audit and / or Accountancy update courses: