Auditing in a Time of Social Distancing

Source: Journal of Accountancy

In a recent Journal of Accountancy article, Ken Tysiac addressed the changing landscape of auditing due to social distancing requirements. Firms may have resisted remote auditing prior to the pandemic because they believe it’s easier to assess a situation or identify fraud when visiting businesses in person.

Now that COVID-19 is forcing social distancing, firms must reconsider remote auditing and how to best serve their clients while still meeting strict auditing requirements. Not being on site to pick up clues based on a firm’s environment and practices means that accountants will need to work diligently to overcome the barriers distance can create.

For example, firm leaders recommend using videoconferencing technology. “Face to face” video conversations are especially valuable when you can’t go to your client’s office. Many videoconferencing tools enable document and screen sharing to simulate as much of an in-person feel as possible.

Secure web portals are another must-have for remote auditing. Experts recommend avoiding email for transferring sensitive information due to the risk of information theft. Providing a secure web portal for information transfer protects you and your client.

Read-only access to your clients’ payroll and human resources systems is another powerful tool because it enables real-time auditing of payroll. Being able to see documentation and how information is transmitted gives auditors a more complete picture of any reports received during the audit.

Communication with clients is also key. Auditors keep records of any verbal communication with a client, and now email communication should be included in that record as well. Maintaining normal practice wherever possible is also helpful. For instance, if you would normally discuss an issue with your client in person, then make a phone call rather than sending an email.

For the complete article, read “Remote auditing comes to forefront during pandemic.”

From Journal of Accountancy, March 24, 2020, journalofaccountancy.com.