Auditing in the Era of the COVID-19 Pandemic: A Discussion of Challenges and Key Matters

Abstract

As of the beginning of November 2020, the number of COVID-19 cases worldwide has approached 47 million cases. In the United States, there have been over nine million COVID-19 cases, and the death toll is approaching 232,000 deaths. The pandemic has negatively affected the economy, unemployment rates, and the performance of many industry sectors. Despite the adversities of COVID-19, stakeholders need external auditors to continue providing high-quality assurance work. We discuss the challenges and key matters that external auditors face due to the pandemic. We provide thoughts and suggestions for auditors to consider. Additionally, we propose some research ideas for academic researchers to advance in the future. The topics that we emphasize include remote auditing, scope limitations, auditing inventory, disclosures on risks and uncertainties, subsequent events, going concern opinions, internal controls, and fraud risk. This article should be informative to audit practitioners, corporate stakeholders, and academic researchers. External auditing will continue to play a crucial role in the functioning of the capital markets. It is essential to gather and disseminate knowledge about how auditors can remain effective and resilient during even the most strenuous times.