The Audit Challenges and Corona virus Lockdown
This pathogen poses with authority to force human extinction and to destroy and divulge business information failure. This is to confirm that new audit/client relationships become variable. Likely, audit practices are disciplined in a highly programmed manner to follow but corona virus comes with an endorsed conflict on human health and hygiene all over the world well touting in a properly developed world without exceptions. It sends everybody scampering with fear to die at large unprepared living many assignments left undone and unaccomplished.
As auditors, we derive rules and mandate to follow orderly to manage change in auditing our clients. The pathogen endorses risks limiting professional audit practices in a traditional way. Audits to be trusted properly need to change focus in approach to complete audit assignments and produce transparent and trusted audit assertions from home. Delimits of professional concern in terms of field audits and auditing stocks, valuations. Also locations for stock taking and observations torment professional audit clouts. Most especially, stock or inventory observations at physical stock taking could forward wrong valuations and will affect annual assertions on a fair balance sheet .With Lockdown enforcing most manpower to work from home comes with generative work out puts that changes the behavior of audit staff. Therefore, ethics in audit practices and the demand for skilled human attention, predict more challenges in future in managing risks and client relationships. Businesses are mad at their poor performances due to the advent of corona virus and lockdowns. Workers have been retrenched since there is no business. Tax regimes have lost tax revenue to plan state or support national budgets and plans. Lockdowns define other sources of state revenue to mainly Government programs. Industries are forced to open against the will of corona virus and workers fear to die yet work to survive. What a major risk considering the re-concordance of virus attacks during the 1918 Spanish Flue that in the second wave it killed over fifty million people were disseminated in the city of Topeth to just fifty thousand residents only!
As auditors we observe orders and instincts to obey nature at the moment with all the faith that we are counting out more or less leading to pens down but live in fear of losing life from the pandemic. The question is do corona viruses make auditors relevant? Corona virus has brought to attention new approaches to audit work and fairly play cognizant roles in introducing new audit tactics and work approaches to audit practice. For auditors working from home also need an introduction to use all times modernized audit tools that are self-evaluating will impinge on human resource the reduction of audit manpower. Cloud auditing and satellite audits will bring more challenges to auditing especially in third world or LDCs. Standards of auditing are fair but will need more careful application in this process of auditing were physical supervision of staff is not required. Improvements in types of audit software will provide a handsome solution. More innovations are needed to make auditing relevant, trusted and accepted. Audits will have to be versatile, precise and succinct and conclusively timely. Audit contribution claim changes in ethical acceptances. It addresses on locations in the performance of audit practices and analysis. Presently, risks derelict of natural hazards have engulfed the world with such environmental degradation due to human activities, floods due to heavy or torrential tropical and equatorial rains , locusts eat farm crops and corona virus are reducing human population and wars and nuclear computers are all but destructive of business as leading to stagnation.
Auditors work seeks apology now not remorse from its own laxity in predictions in managing risks of this caliber. The mantra introduces new sets of audit risk imaginations, and to promote revisions of audit standards which impact audit rules and reporting. The audit profession is divorced from talk of motivation and skills elapse. They eclipse the return to training audit avoidance to which the pandemic of risks delude professional practice. The solution is to return to modern audit training. Therefore, Audits demand professional practice and eligibility open letters of engagements when working from home.
Therefore auditors’ around this time need to point at:
Ethics observance and changes, staff management, motivation and risk management. Risks working from home and clients witnessing change in managing staff costs. Wages bill that have been forces of attention now remain cantankerous because working from home poses other business and work ethics pointing to: ghost workers, forged resolutions for contract execution of discipline. Some risks are avoidable. However, Auditors presently need to increase knowledge of IT for them to operate competitively even from home.
GOOD NEWS IS: We train professional Modern auditors who support all customers to improve their efficiency. Auditors have done nothing wrong to be ignored but PPAs have done something right to attract further skills for a modern auditor. At PAI we prepare you to attain proper audit skills at a post graduate level and to become well leveled above a competitive expert auditor targeting highest points in salary/wage earnings. Audit institutions are faced with limitations of skills innovation to produce a modern auditor required by all sectors of the economy. Auditors and accountants are being looked at as a cost to organisations who front them as employees without value addition. This scenario won’t change anytime sooner. For instance, with the coming into perspective of accounting and satellite audit software and others, audit and accounts staffs who are considered to be soon irrelevant simply because we are not showing the investors why we exist and can add value to them? A PPA is a standalone audit practitioner for next decade ahead by Richard Bernard Gudoi Gid’Agui. MSc.Audit (BCU-UK, MBA, FPPA, CIA,CFE,CFSA, CGFM. President-PAI.