COVID 19 - Accounting and Auditing Issues

The last year has seen significant issues for all businesses as they adapt to life during the pandemic and make plans for the future. There are numerous considerations affecting the preparation of accounts and the audit thereof

Accounting issues

• Going concern treatment and disclosure.
• Valuation and impairment of fixed assets.
• Rent concessions
• Provisions, including onerous contracts and restructuring
• Loan covenants
• Grants, loans and other financial support.
• Revenue recognition.
• Insurance recoveries.
• Filing

Audit issues

• Ethical considerations
• Planning – the entity, the environment, the risks
• Materiality
• Communication – internally and externally
• Gathering evidence
• Group considerations
• Going concern and other reporting issues