Survey on the impact on audit of the COVID-19 outbreak

What size firm are you currently working at?

What is your current position?

How many years of audit experience do you have?

Are you ACA qualified or equivalent?

Since the COVID-19 outbreak in the UK (March 2020), audit complexity has increased compared to before.

Since the COVID-19 outbreak in the UK (March 2020), audit testing and procedures have changed compared to before.

Since the COVID-19 outbreak in the UK (March 2020), the style of working in audit has changed compared to before.

Since the COVID-19 outbreak in the UK (March 2020), auditing difficulty has increased compared to before.

Since the COVID-19 outbreak in the UK (March 2020), audits have more resources/a bigger budget compared to before.

Since the COVID-19 outbreak in the UK (March 2020), audits have become more efficient compared to before.

Since the COVID-19 outbreak in the UK (March 2020), it is more difficult to coach junior staff compared to before.

Since the COVID-19 outbreak in the UK (March 2020), the quality of analytical review has increased compared to before.

Since the COVID-19 outbreak in the UK (March 2020), it has been harder to maintain professional sceptism compared to before.

Since the COVID-19 outbreak in the UK (March 2020), audit quality has increased compared to before.

Since the COVID-19 outbreak in the UK (March 2020), procedures around going concern have increased compared to before.

Since the COVID-19 outbreak in the UK (March 2020), there is more risk around going concern compared to before.

Since the COVID-19 outbreak in the UK (March 2020), more companies are in financial distress compared to before.

Since the COVID-19 outbreak in the UK (March 2020), there are more modified audit reports compared to before.

Since the COVID-19 outbreak in the UK (March 2020), there should be more modified audit reports compared to before.

Since the COVID-19 outbreak in the UK (March 2020), partners/responsible individuals are more reluctant to sign off accounts compared to before.

Since the COVID-19 outbreak in the UK (March 2020), auditing in general and signing off accounts is riskier compared to before.

My firm quickly adapted to the challenges of COVID-19.

Before the COVID-19 outbreak, audit quality was improving.

During the period Apr-20 to Mar-21, more companies will enter administration despite having a clean audit report (unmodified opinion and unmodified report) in their last set of filed financial statements than in the 12 months previous (Apr-19 to Mar-20).

I believe COVID-19 has increased audit failure (defined as an incorrect audit opinion or lack of correct disclosure in an audit report) for accounts signed after March 2020.

Government support is saving businesses who would have entered administration due to COVID-19.

Government support is saving businesses who would have entered administration regardless of COVID-19.

Since the COVID-19 outbreak, where COVID-19 is a significant factor in uncertainty, and the company would not survive indefinitely in 'lockdowns', confidence in government support during 'lockdowns' is and was a key factor in an unmodified audit report being issued.

Since the COVID-19 outbreak, where COVID-19 is a significant factor in uncertainty, and the company would not survive indefinitely in 'lockdowns', confidence that future 'lockdowns' would not be for more than a long period (i.e. 6-months) is and was a key factor in an unmodified audit report being issued.

Since the COVID-19 outbreak, where COVID-19 is a significant factor in uncertainty, and the company would not survive indefinitely in 'lockdowns', the fact that extended future 'lockdowns' would result in many companies failing, and therefore many businesses could fail unexpectedly, was a key factor in issuing an unmodified report.

Auditors could not have expected or reasonably anticipated a pandemic when signing accounts in 2019, and as such could not be reasonably expected to disclose a material uncertainty over going concern for companies that entered administration after the COVID-19 outbreak, if the company was not in financial distress before.

For financial statements signed after the COVID-19 outbreak, there is a reasonable expectation for them to identify going concern uncertainty due to COVID-19.

Where COVID-19 is a significant factor of uncertainty for a business, accounts will likely be filed late and signed once the impacts are clearer.

Auditing small companies is harder as a result of COVID-19 than auditing large companies.

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