Audits slowed but continue in spite of COVID-19<\/p>\n<\/p>\n
With the warning signs of COVID-19 approaching back in early March, audit firms were faced with the prospect of conducting work under unknown conditions.\u00a0<\/p>\n
However, there were warning signs even before the coronavirus made it as far as Europe. China\u2019s response to the outbreak, before the virus had spread beyond its immediate border, represented a growing concern for some firms.<\/p>\n
\u201cWe have a manufacturing client with Chinese parents and international operations. The lockdown in China impacted them early and we managed three-quarters of the audit before having to stop,\u201d said Beever and Struthers<\/a> manager John Toon.<\/p>\n On top of negotiating the implications of the various government announcements, those midway or in the planning stages of audits were forced to reach for their contingency plans.\u00a0<\/p>\n Price Bailey<\/a> had early plans to shift work to a remote-working model with its 120 auditing staff. \u201cWe quickly established COBRA meetings with the four team leaders to ensure that audits could continue. You can never be sure how robust IT will be, but it worked very well,\u201d said corporate partner Paul Cullen.<\/p>\n Nonetheless, with the outbreak having a sudden and simultaneous negative impact on almost all clients, the challenges arising as a consequence have been anomalous and unprecedented.<\/p>\n Firms like Beever and Struthers who communicated with clients as early as possible were given an idea of the impact on future resources. \u201cWe talked to all our clients and used it as an early warning that some [audits] would be delayed. Some of our housing association clients, for example, could create a distinct bottleneck later in the year if twenty or so deferred,\u201d explained Toon.<\/p>\n For Cullen, audits have continued apace despite the extensive impact of COVID-19. The majority of Price Bailey\u2019s audits have not been delayed \u2013 \u201cit will give us a pinch point later, but 80-90% are continuing. It\u2019s about working together with the client and seeing what is possible\u201d.\u00a0<\/p>\n \u201cA significant proportion of the work can be done remotely if both sides can play ball,\u201d agrees TC Group<\/a> charities audit partner Mark Cummins. \u201cIf we can get 70% of it done now, and do the rest later. It\u2019s not ideal, but is workable. Clients are very keen to keep things moving if possible\u201d, added Cummins.<\/p>\n Cloud-based systems hold a distinct advantage when client access is restricted. Many firms were fortunate to already be utilising a range of cloud or online systems when remote working became imperative.<\/p>\n For Cullen, \u201cUsing client portals is an effective way of running an audit, even with the team on-site, because seniors can see what’s going on and is a secure way of handling information.\u201d<\/p>\n Having already been set up on cloud-based systems, Beever and Struthers is able to run analytic and management platforms like Inflo<\/a> over the top. \u201cWe get a good view of everything from journal testing, sales process mapping and fraud spotting,\u201d said Toon.\u00a0<\/p>\n \u201cOf course, the more cloud they are, the easier it is for us to work collaboratively or see data directly.\u201d Circit<\/a> is also used by the firm for banking confirmation, and Xavier Analytics<\/a> to measure the data quality of postings and VAT.<\/p>\nResponding and planning ahead<\/strong><\/h3>\n
Getting as much of the job done as possible\u00a0<\/strong><\/h3>\n
Online and cloud computing come into their own<\/strong><\/h3>\n
Challenges of not being on-site<\/strong><\/h3>\n