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Auditing in the time of COVID – the impact of COVID-19 on auditing in New Zealand and subsequent reforms

Auditing in the time of COVID – the impact of COVID-19 on auditing in New Zealand and subsequent... This special issue paper aims to describe the early effects of COVID-19 on auditing in New Zealand, and the subsequent reforms that the authors expect will follow.Design/methodology/approachThe authors use published sources to discuss the impact of COVID-19 on auditing, and potential reforms.FindingsCOVID-19 was at first expected to have a substantial impact on audit outcomes such as audit opinions. The effects that eventuated have been much less substantial so far. Nevertheless, the authors expect reforms to auditing to take place, especially including non-audit services, reports on inspections of auditors and more reporting on going concern issues by directors, followed by increased responsibility for auditors. In future, there may be further changes including reform to the liability of auditors, reporting on internal control, more responsibility for fraud and changes to corporate governance.Research limitations/implicationsLimitations include the ongoing nature of the COVID-19 crisis. Further effects may yet eventuate.Practical implicationsFinancial report users and auditors should anticipate changes.Originality/valueThis paper provides early evidence of the impact of COVID-19 on New Zealand auditing and predicts changes to the regulation of auditing. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Pacific Accounting Review Emerald Publishing

Auditing in the time of COVID – the impact of COVID-19 on auditing in New Zealand and subsequent reforms

Pacific Accounting Review , Volume 33 (2): 10 – Aug 10, 2021

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0114-0582
eISSN
0114-0582
DOI
10.1108/par-09-2020-0155
Publisher site
See Article on Publisher Site

Abstract

This special issue paper aims to describe the early effects of COVID-19 on auditing in New Zealand, and the subsequent reforms that the authors expect will follow.Design/methodology/approachThe authors use published sources to discuss the impact of COVID-19 on auditing, and potential reforms.FindingsCOVID-19 was at first expected to have a substantial impact on audit outcomes such as audit opinions. The effects that eventuated have been much less substantial so far. Nevertheless, the authors expect reforms to auditing to take place, especially including non-audit services, reports on inspections of auditors and more reporting on going concern issues by directors, followed by increased responsibility for auditors. In future, there may be further changes including reform to the liability of auditors, reporting on internal control, more responsibility for fraud and changes to corporate governance.Research limitations/implicationsLimitations include the ongoing nature of the COVID-19 crisis. Further effects may yet eventuate.Practical implicationsFinancial report users and auditors should anticipate changes.Originality/valueThis paper provides early evidence of the impact of COVID-19 on New Zealand auditing and predicts changes to the regulation of auditing.

Journal

Pacific Accounting ReviewEmerald Publishing

Published: Aug 10, 2021

Keywords: New Zealand; Auditing; Fraud; Liability; Going concern; COVID-19

References