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Weekly Webinar Series – Webinar 3 – July 23
Practical Audit Quality Considerations –
Auditor Reporting in the Pandemic
Environment & Looking Ahead
David Isherwood – Webinar Chair
• Chair, Forum of Firms
• Partner, Audit Advisory, BDO UK
Welcome Bonjour Bienvenidos
This webinar will be recorded and made available @ www.ifac.org

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David Isherwood
Weekly Webinar Series – 07:00 to 09:00 NY Time
Audit Planning – Thursday July 9
Audit Execution – Thursday July 16
Auditor Reporting & Looking Ahead – Thursday
July 23

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David Isherwood
Webinar #3 Objective…
Highlight some of the key
challenges to Audit Quality in
reporting on the audit in the
pandemic environment – and
looking ahead to the future
Building on Webinar #1 & #2,
offer insights on practical
considerations to help navigate
those challenges and consider
useful lessons learnt from this
continuing experience for how
we audit in the future

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• Josephine Jackson
Member, IAASB &
Director – International Auditing and Assurance Standards, UK Financial Reporting Council
• Caroline Monk
HLB International [Member, Forum of Firms] &
Executive Partner, Beever and Struthers, UK
• Andrew Brathwaite
Member, IFAC Small and Medium Practices Advisory Group &
Audit Partner, KPMG Barbados
• Richard Lawrence
Head of Accounting & Valuation Policy
Nat West Group plc
• Lisa Smith
Deloitte Touche Tohmatsu Limited [Member, Forum of Firms]
Managing Director, Deloitte & Touche LLP
Panelists
David Isherwood

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• Global humanitarian crisis – massive loss of life & suffering
• Seismic impact – every facet of how we think & operate
• Massive economic consequences
• We’re still very much comprehending & adjusting both
personally and professionally
• More recently, strong movement on racial justice issues
Context…
David Isherwood

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• So much information re COVID
• Uncertainty and fear
• The importance of ‘safety’
• For some – spikes in infection & going back into lock-down
• Despite thoughtful audit planning and exercising of
professional skepticism throughout audit execution,
challenges may exist as to how we conclude and report on
the audit…
Context…
David Isherwood

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As confirmed in Webinar #1
& #2, while so much has
changed, some things have
not – our commitment to:
• Audit Quality
• Professional standards
• Community and society
Continued Commitment…
David Isherwood

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New ways of working
Risk identification & internal controls
Materiality
Ethics/Independence
Key areas of focus from Webinar #1…
David Isherwood
AUDIT APPROACH
PEOPLE WELLNESS

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Key areas of focus from Webinar #2…
David Isherwood
AUDIT EVIDENCE
ACCOUNTING ESTIMATES
ENGAGEMENT QUALITY REVIEWS

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David Isherwood
Given all this, today’s webinar…
• AQ Challenges & Practical AQ Considerations
≈ 30 mins
• Q&A ≈ 15 mins
GOING CONCERN
• Same as aboveAUDITOR REPORTS
• Roundtable with Q&A ≈ 15 minsLOOKING AHEAD

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• Subjectivity of meaningful baseline economic forecasts
• Complexity of evaluating the degree of business disruption
• Announcement of gov’t relief vs knowing of all terms/conditions of relief
• Disclosures related to Going Concern supporting the auditor’s report
• Going concern assessments – Private vs Public companies
• Documentation
AQ Challenges & Practical Considerations
David Isherwood & Panelists
GOING CONCERN

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Panelists
AQ Challenges & Practical Considerations
Q&A – Going Concern
Please submit questions via Q&A function

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• KAMs/CAMs, modified opinions
• Subsequent events – adjusting vs non-adjusting
• Possible increased differences of views btwn client and auditor
• ‘Close calls’
• C/KAMs (or new C/KAMs) in auditors report
• Enhanced communication with client on other than ‘clean’ opinions
AQ Challenges & Practical Considerations
David Isherwood & Panelists
AUDITOR REPORTS

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Panelists
AQ Challenges & Practical Considerations
Q&A – Auditor Reports
Please submit questions via Q&A function

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• What have we learnt – auditors & clients – useful lessons going forward
• What has changed…forever?
• Automation, new skill sets identified
• Agility/nimbleness
• People wellness, talent attraction, enhanced supervision and communication skills with audit
teams
• Continue building from here to further enhance audit quality
• Ready for the next pandemic?
AQ Challenges & Practical Considerations
David Isherwood
LOOKING AHEAD

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Panelist Roundtable Discussion
AQ Challenges & Practical Considerations
Panelists
LOOKING AHEAD

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Panelists
AQ Challenges & Practical Considerations
Q&A – Looking Ahead
Please submit questions via Q&A function

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– One pager on key points from all 3 Webinars
– Recording of all 3 Webinars
– Financial Reporting and Audit Issues due to the pandemic
– Curated Covid-19 resources webpage
Look out for the following…
WWW.IFAC.ORG
WWW.IAASB.ORG
WWW.ETHICSBOARD.ORG

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Thank You
CHAIR & ALL
PANELISTS
FOR ATTENDING BE SAFE
POP-UP SURVEY
AUDIT QUALITY IS PARAMOUNT

20. www.ifac.org
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OfAccountants
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