auditor’s reporting key audit considerations amid covid-19

Auditor’sReportingKeyAuditConsiderationsamidCOVID-19

AuditingandAssuranceStandardsBoard(AASB)TheInstituteofCharteredAccountantsofIndia

Auditing and Assurance Standards Board (AASB) �e Institute of Chartered Accountants of India


Composition of AASB

CA. G. Sekar,

Chairman, AASB

CA. (Dr.) Debashis Mitra,

Vice Chairman, AASB

CA. Atul Kumar Gupta,

President, ICAI

CA. Nihar Niranjan Jambusaria,

Vice-President, ICAI

CA. Anil Satyanarayan Bhandari

CA. Chandrashekhar Vasant Chitale

CA. Nandkishore Chidamber Hegde

CA. Shriniwas Yeshwant Joshi

CA. Durgesh Kumar Kabra

CA. Aniket Sunil Talati

CA. Dayaniwas Sharma

CA. M.P. Vijay Kumar

CA. Ranjeet Kumar Agarwal

CA. Manu Agrawal

CA. Anuj Goyal

CA. Kemisha Soni

CA. Satish Kumar Gupta

CA. Prakash Sharma

CA. Hans Raj Chugh

CA. Pramod Jain

CA. Charanjot Singh Nanda

CA. (Dr.) Sanjeev Kumar Singhal

Ms. Ritika Bhatia

Adv. Vijay Kumar Jhalani

Council Members

Co-opted Members

CA. Jaideep Bhargava

CA. R S Balaji

CA. Rahul Joglekar

CA. Kshitij Manubhai Patel

CA. Amit Gattani

CA. Kedar Kumbhojkar

CA. Kailash Chandra Baheti

CA. Ramakant Gupta

Special Invitees

CA. Jeenendra Bhandari

Dr. Padmini Srinivasan

Dr. Ashok Haldia



Acknowledgement

CA.(Dr.)DebashisMitraViceChairmanAuditingandAssuranceStandardsBoard

CA.G.SekarChairman

AuditingandAssuranceStandardsBoard

WewishtoexpressoursincerethankstoCA.AtulKumarGupta,HonourablePresident,

ICAI and CA. Nihar Niranjan Jambusaria, Honourable Vice-President, ICAI for

providing us the opportunity to develop this Auditing Guidance on “Auditor’s

Reporting–KeyAuditConsiderationsamidCOVID-19”forthebene�itofthemembers.

We express our gratitude to theBoardmembers for their valuable suggestions in

�inalizingthisGuidance.



Other Auditing Guidance on COVID-19 issued by AASB

March27,2020:ICAIAccountingandAuditingAdvisory-ImpactofCoronaviruson

FinancialReportingandtheAuditorsConsideration(issuedjointlywithAccounting

StandardsBoardofICAI).

WebsiteLink:https://resource.cdn.icai.org/58829icai47941.pdf

May10,2020:GoingConcern-KeyConsiderationsforAuditorsamidCOVID-19.

WebsiteLink:https://resource.cdn.icai.org/59473aasb48392.pdf

May13,2020:PhysicalInventoryVeri�ication–KeyAuditConsiderationsamid

COVID-19.

WebsiteLink:https://resource.cdn.icai.org/59498aasb48418.pdf



Theauditor’sresponsibilityforforminganopiniononthe�inancialstatementsisdealt

withinSA700(Revised),“ForminganOpinionandReportingonFinancialStatements”.

SA 700(Revised) deals with unmodi�ied auditor’s opinion. SA 705(Revised),

“Modi�ications to theOpinion in the IndependentAuditor’sReport”dealswith the

auditor’s responsibility to issue an appropriate report in circumstances when, in

forminganopinioninaccordancewithSA700(Revised),theauditorconcludesthata

modi�ication to the auditor’s opinion on the �inancial statements is necessary. SA

705(Revised)requiresthatiftheauditor:

concludesthat,basedontheauditevidenceobtained,the�inancialstatementsasa

wholearenotfreefrommaterialmisstatement;or

is unable to obtain suf�icient appropriate audit evidence to conclude that the

�inancialstatementsasawholearefreefrommaterialmisstatement,theauditor

shallmodifytheopinionintheauditor’sreport.

This responsibility isheightened in thepresent situation,whereCOVID-19and its

related preventive measures, such as lockdown and travel restrictions by the

GovernmentofIndiahaveimpactonbusinessoperations.

Management’sResponsibility

While preparing the �inancial statements,

consideringthenatureofbusinessoftheentity,

the management needs to make a detailed

assessment(totheextentpossiblebasedonthe

informationavailable)oftheimpactofCOVID-

19 on the items, components of the �inancial

statementsincludingdisclosuresinthe�inancial

statements(e.g.appropriatenessofcarryingvaluesofgoodwillandotherintangible

Background

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assets,fairvaluation,impairmentofassetsetc.)andtheappropriatenessofthegoing

concernbasisofaccounting.

Themanagement’s responsibility includesmaking appropriate adjustments to the

�inancial statements and ensuring necessary disclosures, such as disclosures of

subsequentevents,risksanduncertainties,andhoweventsandconditionsmayimpact

future operating results, cash �lows and �inancial position of the entity. Other

disclosures may include business risk factors and management's discussion and

analysisofresults,liquidityandcapitalresources.Inthiscontext,theauditorshould

alsoconsidertherequirementsofSA720(Revised),“TheAuditor’sResponsibilities

RelatingtoOtherInformation”.

Itispossibleforthemanagementofanentitycarryingonthebusinessofessential

commodities to conclude that there is no impact on the operations of the entity.

However, the management should also consider the related factors, such as the

possibledisruptionofthesupplychain,availabilityofcustomersforitscommodities,

andtakeaninformeddecisiononwhetheritsoperationsareimpactedornot.

Auditor’sResponsibility

Whilecarryingoutauditinaccordancewith

the StandardsonAuditing (SAs) andother

applicable authoritative pronouncements

issued by the Institute of Chartered

Accountants of India, the auditor may

concludeonthefollowing:

Modi�icationtotheauditor’sopiniondue

tomaterialmisstatementsoraninability

toobtainsuf�icientappropriateauditevidence[SA705(Revised)].

Inclusion of a ‘Material Uncertainty Related to Going Concern’ section in the

auditor’sreport[SA570(Revised),GoingConcern].

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InclusionofanEmphasisofMatterparagraphand/orOtherMatterparagraphin

theauditor’sreport[SA706(Revised),EmphasisofMatterParagraphsandOther

MatterParagraphsintheIndependentAuditor’sReport].

Inclusionofkeyauditmattersintheauditor’sreport[SA701,CommunicatingKey

AuditMattersintheIndependentAuditor’sReport].

Whileconsideringtheauditor’sreportinginrespectoftheimpactofCOVID-19onthe

�inancialstatementsofanentity,theauditorshouldconsiderwhethersuf�icientand

appropriateauditevidenceisavailablefortheauditortobeabletoassessthefactors

setoutbelow.Thesefactorsareindicativeandnotexhaustiveandtheauditorshould

alwaysmaintainprofessionalskepticismandapplyprofessionaljudgmentonacaseto

casebasisandconsiderotherfactorsasapplicable.

whethertheimpactonthebusinessoperations/revenues/cash�lowsetc.ofthe

entityfortheyear(includingfairvaluations,estimates,realisability,discountrates

usedetc.)hasbeenappropriatelyassessedbythemanagement.

whethertheeventsoccurringsubsequenttotheyear-endbutbeforeissuanceofthe

auditor’sreport,havebeenconsidered.

whetheranyadjustmentsarerequiredtothe�inancialstatements;ifyes,whether

thesamehavebeenappropriatelyaccountedfor.

whether the impact on the going concern basis of accounting of the �inancial

statementshasbeenassessed to concludeon (a)appropriatenessof theuseof

goingconcernbasisofaccounting,and(b)existenceofmaterialuncertaintyrelated

togoingconcern.

whether appropriate disclosures have been made in the �inancial statements

regardingtheimpactandthemanagement’sassessmentofthesameincludingthe

impactongoingconcernbasisofaccounting.

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ThepossibleimpactofCOVID-19ontheauditor’sreportisdiscussedbelow.

a. Modi�icationoftheAuditor’sOpinion[SA705(Revised)]

Theauditorshouldmodifyhisopiniononthe�inancialstatementsinthefollowing

circumstances:

Improper accounting/ inadequate disclosures: Auditors should remain

alerttothepossibilitythat,inthecurrentcircumstances,misstatementsmay

occur.Suchmisstatementsmayarise,forexample,duetoafailuretorecognise

adequateimpairmentofassetsoradequateprovisionsforobligationsorto

provide related disclosures. When the auditor has concluded that the

necessaryaccountingadjustmentshavenotbeenappropriatelymadeand/or

thedisclosures in the �inancial statements that themanagementhasmade

regarding the impact of COVID-19 on the entity are not adequate or

appropriateinthecircumstances,theauditor’sopinionmaybemodi�ied.The

saidmodi�icationcouldbeaquali�iedoradverseopinion,asappropriateinthe

circumstancesdependingonthematerialityandpervasivenessoftheimpact

[SA705(Revised),paragraphs7,8].Forexample,theconsequencesofCOVID-

19 may have a potential adverse impact on cash �lows and trigger an

impairment test; however the management has not carried out such an

assessment or has not made appropriate disclosures in respect of the

underlyingassumptions.

Inabilitytoobtainsuf�icientappropriateauditevidence:Amodi�icationto

theauditor’sopinion(quali�icationordisclaimerofopinion,asappropriatein

thecircumstances) isnecessary if theauditor isunable toobtainsuf�icient

appropriate audit evidence to conclude that the �inancial statements as a

wholearefreefrommaterialmisstatement[SA705(Revised),paragraphs7,9].

I. Impact on Auditor’s Report

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If theauditordetermines thathe isunable toobtainsuf�icientappropriate

auditevidencefromalternativeauditprocedurespossiblyduetolockdown,

social distancing or work from home restrictions, it may affect auditor’s

opinionon the �inancial statements, auditor’sopinionon internal �inancial

controlsandauditor’sreportingonCARO2016.

b. GoingConcernConsiderations[SA570(Revised)]

Formanyentities,themeasurestakenbyGovernmentinordertocurbthespread

ofCOVID-19,suchaslockdownrestrictionsmayimpactthebusinessoperations

andresultineventsorconditionsthatmaycastsigni�icantdoubtontheentity’s

ability to continue as a going concern. When such events or conditions are

identi�ied, the auditor should seek suf�icient appropriate audit evidence to

determinewhetherornotamaterialuncertaintyexistsandalsoassesswhether

theuseofgoingconcernbasisofaccountingisappropriateandreportaccordingly.

Fordetailedguidanceonthisaspect,pleaserefertheguidance:“GoingConcern-

Key Considerations for Auditors amid COVID-19” issued by the Auditing and

AssuranceStandardsBoardofICAI.

c. IncludinganEmphasisofMatterParagraphintheAuditor’sReport

AsperSA706(Revised),theterm“EmphasisofMatterParagraph”isde�inedas

follows:

“EmphasisofMatterparagraph–Aparagraphincludedintheauditor’sreport

thatreferstoamatterappropriatelypresentedordisclosedinthe�inancial

statements that, in the auditor’s judgment, is of such importance that it is

fundamentaltousers’understandingofthe�inancialstatements.”

Where there are substantive COVID-19 related disclosures in the �inancial

statementsmadebythemanagementoftheentityandtheauditorissatis�ied

that these disclosures are appropriate and adequate, then based on the

professionaljudgmentoftheauditor,anEmphasisofMatter(EOM)paragraph

maybeincludedintheauditor’sreport.AnEOMparagraphisawaytodraw

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attention/highlightsuchdisclosurestousersofthe�inancialstatementswhen

theauditorconsidersitisfundamentaltotheirunderstandingofthe�inancial

statements.AnEOMparagraphcannotbeusedasasubstituteforreportingthe

matterasakeyauditmatter.

ExampleofEOMwordingsforauditor’sreport

“Emphasisofmatter–EffectsofCOVID-19

WedrawattentiontoNoteX inthe �inancialstatements,whichdescribesthe

economicandsocial[consequences/disruption]theentityisfacingasaresultof

COVID-19 which is impacting [supply chains / consumer demand/ �inancial

markets/commodityprices/personnelavailableforworkandorbeingableto

accessof�ices].Ouropinionisnotmodi�iedinrespectofthismatter.”

OnthebasisofitsassessmentoftheimpactoftheoutbreakofCOVID-19on

businessoperationsoftheentity,theentity’smanagementmayconcludethat

noadjustmentsarerequiredinthe�inancialstatementsasitdoesnotimpact

the current �inancial year. However, the situation with COVID-19 is still

evolving. Also, the various preventive measures taken (such as lockdown

restrictionsby theGovernmentof India, travel restrictionsetc.) are still in

force, leading to a highly uncertain economic environment. Due to these

circumstances,themanagement’sassessmentoftheimpactonthesubsequent

periodisdependentuponthecircumstancesastheyevolve;andconsequently,

the auditor shall decide on the adequacy of disclosures made by the

managementandifdisclosuresareadequate,theauditormayincludeanEOM

paragraphtohighlighttheuncertaintiesrelatingtothefutureandtodrawthe

attention of the users of the �inancial statements. [paragraph A5 of SA

706(Revised)]

AsstatedinparagraphA5ofSA706(Revised),theauditormayincludeanEOM

paragraphinthefollowingsituationswhileassessingtheimpactofCOVID-19

ontheentityandtheimpactonthe�inancialstatements:

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Anuncertaintyrelatingtothefutureoutcomeofexceptional litigationor

regulatoryaction.

Asigni�icantsubsequenteventthatoccursbetweenthedateofthe�inancial

statementsandthedateoftheauditor’sreport.

Amajorcatastrophethathashad,orcontinuestohave,asigni�icanteffecton

theentity’s�inancialposition.

Forexample,theauditorshouldassesstheimpactofCOVID-19onaviation,

hospitalityindustries,etc.

Thedictionarymeaningoftheword“catastrophe”is“aneventcausinggreat

andusuallysuddendamageorsuffering;adisaster”.TheimpactofCOVID-19

should be assessed by the auditor and the auditor may include an EOM

paragraphinthesituationsindicatedaboveintheauditor’sreport.Further,the

auditormayincludeanEOMparagraphtohighlightasigni�icantsubsequent

event. It is highlighted that such EOM paragraph shall be included by the

auditor only when all related disclosures are appropriately made by the

management. Otherwise, it could even lead to modi�ication of auditor’s

opinionasperSA705(Revised).

d. COVID-19andKeyAuditMatters

AcommonquestionthatisbeingaskediswhethertheimpactofCOVID-19isa

keyauditmatter(KAM)inanauditperse.TheimpactofCOVID-19onspeci�ic

areas of the �inancial statements needs to be evaluated for thepurpose of

reporting KAM. For example, physical veri�ication of inventory using

alternativeauditproceduresmayinvolvemoreeffortvis-a-visanon-COVID-19

scenario. Similarly, the auditorwouldbemore skeptical about impairment

assessmentincurrentscenario.Further,itshouldbenotedthattheauditoris

notperformingprocedurestoassesstheimpactofCOVID-19itselfratherthe

procedures are being performed in respect of speci�ic items of �inancial

statementsorassumptions(forexamplegoingconcern,impairment,expected

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credit loss,valuationetc.)and thus thatparticular item/assumptionwould

qualifytobeaKAM,wherethecriteriasetoutinSA701aremet.

Whendrafting theKAM in theauditor’s report, theauditor shouldnotuse

generic/vaguelanguageandshoulduseentityspeci�ic&clearlyarticulated

languagetoexplaintheimpactofCOVID-19.LanguageofKAMshouldbringout

clearlythecomplexitiesarisingfromCOVID-19ontheveri�icationaspectsof

the�inancialstatements.Lastly,amattershouldbeconsideredforinclusionas

KAM only when the auditor has concluded that it does not warrant

modi�icationof theauditor’sopinionandalsodoesnot indicateamaterial

uncertaintyrelatedtogoingconcern.

Insomecases,amatterthathasbeendeterminedtobeaKAMinaccordance

withSA701mayalsobe, in theauditor’s judgment, fundamental tousers’

understandingofthe�inancialstatements(i.e.,couldalsobereportedasan

EOMparagraph).WhentheauditordeterminesthatthematterisaKAM,the

auditorshouldincludeitintheKAMsectionoftheauditor’sreport.However,if

theauditorwishestohighlightordrawfurtherattentiontotheKAM(because

the KAM is also considered fundamental to users’ understanding of the

�inancialstatements),theauditormaydosobypresentingthemattermore

prominently than other matters in the key audit matters section of the

auditor’s report (e.g., as the �irst matter) or by including additional

information in the description of the key audit matter to indicate the

importanceofthemattertousers’understandingofthe�inancialstatements.

e. KAMRelatedtoGoingConcern

ItispossibletoidentifyKAMrelatedtogoingconcernmatters,whichwouldbe

reportedintheKAMsectionoftheauditor’sreport,whentheauditor:

Identi�ieseventsandconditionsthatmaycastsigni�icantdoubtonanentity’s

abilitytocontinueasagoingconcern;and

Concludesthatnomaterialuncertaintyexists;and

Concludes that the disclosures related to those events or conditions are

adequate.

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In such cases, the auditor shoulddescribe the identi�ied eventsor conditions

disclosedinthe�inancialstatementsthatwerethefocusoftheauditor’sattention,

suchassubstantialoperatinglosses,availableborrowingfacilitiesandpossible

debtre�inancing,ornon-compliancewithloanagreements,andrelatedmitigating

factorsinaccordancewithSA701.

f. Auditor’s Responsibilities in respect of Discussion about the COVID-19

PandemicincludedintheOtherInformationintheEntity’sAnnualReport

Otherinformationthataccompaniesthe�inancialstatementsmaybeexpectedto

include discussion on the risks associated with the COVID-19 pandemic that

provides entity’s additional perspectives or details beyond the information

disclosedinthe�inancialstatements.AsrequiredbySA720(Revised),theauditor

should read the other information included in the entity’s annual report and

considerwhetherthereisamaterialinconsistencybetweentheotherinformation

and (a) the audited �inancial statements; and (b) the auditor’s knowledge

obtainedintheaudit,inthecontextofauditevidenceobtainedandconclusions

reached.

Whenreadingtheotherinformation,theauditorshouldpayparticularattention

totheinformationprovidedwithregardtotheimpactCOVID-19mayhaveonthe

entityandconsiderwhetherthereisneworupdatedinformationthatshouldbe

disclosedinthe�inancialstatementsorthatmayaffecttheauditortheauditor’s

report. In doing so, the auditor should also consider whether the other

informationcontradictsanyaspectsoftheauditor’sunderstandingoftheimpact

thepandemichasontheentity’sbusinessoroperations.

When the other information ismade available after the date of the auditor’s

report,theauditorisalsorequiredtoreadandconsidertheotherinformation

whenitbecomesavailable.

If theauditor identi�iesamaterialmisstatement in theother information, the

auditorshouldassesstheeffectontheauditor’sreportandtodealwiththesame

inaccordancewithSA720(Revised).

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WiththeCompanies(Auditor'sReport)Order,2020,beingmadeapplicablefrom

the�inancialyear2020-2021,whilereportingforthe�inancialyear2019-2020,

auditorsshouldcontinuetocommentonthematterssetoutintheCompanies

(Auditor’sReport)Order,2016(CARO2016).

AnillustrativelistoftheclausesofCARO

2016whichareexpectedtobeimpacted

byCOVID-19,astheauditorisrequired

tocommentasattheyear-end,isgiven

below.

a. Clause3(ii):Physicalveri�icationofinventory

Remarks:Thisclauserequirestheauditortocommentwhethertheinventoryof

the company have been physically veri�ied by themanagement at reasonable

intervals and further requires the auditor to comment whether anymaterial

discrepancies were noticed on such veri�ication and if so, whether those

discrepancieshavebeenproperlydealtwithinthebooksofaccount.

Inthisregard,wheretheauditorisunabletoobtainsuf�icientappropriateaudit

evidence,thecommentingonthisclause,andwhereappropriate,theauditor’s

opinionshouldalsobesuitablymodi�ied.

b. Clause3(vii)(a):Reportingondepositofundisputedstatutorydues

Remarks: This clause requires reporting on the payment of statutory dues

includingtheextentofarrearsasonthelastdayofthe�inancialyear.

Consideringthatthelastdayofthe�inancialyear2019-20fellduringthelockout

period,andextensionoftimeisbeinggrantedforpaymentofcertainduesbythe

Governmentauthorities/regulators, thecommenting inrespectof thisclause

II. Impact on Reporting under CARO 2016

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shouldre�lectthefactualpositionregardingtheextensionofdategrantedbythe

relevantauthoritiesforpaymentofsuchdues.Further,wherethecompanyhas

madethepaymentwithinsuchextendedduedates,itdoesnotconstituteanon-

complianceandaccordinglywillnotberequiredtobereportedunderthisclause.

However,ifthereisnoextensionofduedateandanoptionhasbeengiventomake

payments at a later date upon payment of interest and penalty, it should be

reportedasdefault.

c. Clause3(viii):Default in repaymentof loansorborrowing toa �inancial

institution,bank,Governmentorduestodebentureholders

Remarks: RBI has issued a circular dated 27th March 2020 on COVID-19-

RegulatoryPackage.Thecircularprovidesthatcompaniesmaydecidetooptfora

moratorium period for repayment of term loans / working capital �inancing

facilitiesetc.,howeverinterestwouldcontinuetobechargedforthisperiod.

Wherethecompanyhasexercisedthisoption,theauditorshouldmakeafactual

statement in his report. Further,where the company hasmade the payment

within such extended due dates, it does not constitute a non-compliance and

accordinglyisnotrequiredtobereportedunderthisclause.

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Section143(3)(i)oftheCompaniesAct,2013requiresthattheauditor’sreport

shouldstatewhetherthecompanyhasadequateinternal�inancialcontrolswith

referenceto�inancialstatementsinplaceandtheoperatingeffectivenessofsuch

controls.Also,internalcontroltestingisanintegralpartofauditprocedures,as

this determines the level of substantive procedures to be carried out by the

auditor.

Keyfactorstobeconsideredwhileapproachingtheaudit:

a. Non-remediationofmaterialweaknessnoticedduringtheperiodforwhich

internalcontroltestinghadalreadybeencarriedout.

b. Make inquiries on the change in the company’s mode of carrying out

operationsinresponsetotheCOVID-19impact,forexample,peopleworking

remotely,andconsequently,thechangeincompany’spoliciesandprocedures,

includingexecutionofcontrols,forexample,segregationofduties.

c. Speci�icmatters for consideration: The impact of changes to the auditor’s

understandingofthecompany’ssystemofinternalcontrol,including:

i.Thecontrolenvironment.

ii. Changestotheplannedrelianceoncontrolsindeterminingresponsesto

identi�iedrisksofmaterialmisstatement.

d. Rewriting the audit plan to address the changes in the internal control

framework,includingthoserelatingtothedesignandoperationofinternal

controlsandreviewcontrols.

e. Testing the design and operating effectiveness of the updated controls

frameworkincludingthesegregationofdutiesinlinewiththerequirements

setout in the “GuidanceNoteonAudit of InternalFinancialControlsover

FinancialReporting”withthehelpoftherelatedexperts.

III. Impact on Reporting on Internal Financial Controls with Reference to Financial Statements

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f. Evaluatingtheavailabilityofelectronicanddigitalevidencemadeavailableby

management, and the review controls around the same, speci�ically for

reliability,securityandstorageofsuchevidence.

g. Remainalerttothepossibilityoflapseofcontrolsandfraud.

h. Communicationwith those chargedwith governance at every stage of the

auditincludingtheimplicationsontheauditofthe�inancialstatementsand

thereportingthereon.

ReportingonInternalFinancialControlswithreferencetoFinancialStatements

Thefollowingscenariosareenvisaged:

a. Main audit opinion is notmodi�ied; Emphasis of Matter paragraph has been

includedtohighlightimpactofCOVID-19assessment;theauditorhasconsidered

thekeyfactorsmentionedaboveintestingthedesignandoperatingeffectiveness

oftheinternalcontrolswithreferenceto�inancialstatements,and:

i. Materialweaknessisidenti�iedinthedesignoroperationofinternalcontrols

[and/or] the material weakness identi�ied earlier remains unremediated

[and/or]thereisarestrictiononthescopeoftheengagement.

Insuchcases,theauditorshouldmodifyhisopinionontheinternal�inancial

controls;evaluatetheimpactofsuchmodi�icationonthemainauditreport

andasappropriate,modifytheauditor’sopiniononthe�inancialstatementsas

well.

ii. Noconcernshavebeennotedbytheauditorwithregardtothedesignand

operatingeffectivenessofinternalcontrols:

Underthesecircumstances,theauditorshouldincludeacrossreferenceinthe

opiniononinternal�inancialcontrolstotheEmphasisofMatterparagraph

includedinthemainauditreportwithregardtoCOVID-19assessment.

b. Wherethemainauditopinionismodi�iedinrespectofanymatter(includingthat

relating toCOVID-19); the auditor should evaluate thekey factorsmentioned

13



above,anddeterminewhetherthemodi�icationalsoleadstoamodi�icationofthe

reportoninternal�inancialcontrolsandwhereapplicable,modifythereporton

internal�inancialcontrolsaccordingly.

c. Wheretheauditor isunabletoobtainsuf�icientappropriateauditevidenceto

formanopiniononthedesignandoperatingeffectivenessofinternal�inancial

controls with reference to �inancial statements, the auditor should issue a

disclaimerofopinion.

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NOTES

auditor’s reporting key audit considerations amid covid-19

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