Incorrect to assume conflict of interest between auditor and management in most cases’

The Covid-19-induced lockdown has not in any manner affected audit quality in the country, ICAI President Atul Kumar Gupta has said.
None of the auditing or accounting standards had been relaxed because of Covid-19 and auditors have not been given any leeway from compliance with standards on auditing despite the challenges from the pandemic, Gupta told BusinessLine in an interview.

He highlighted that the CA Institute had issued a detailed auditing advisory on the topic ‘Impact of novel corona virus (Covid-19) on audit of financial statements for the financial year ended March 31, 2020’, which focuses on special considerations for auditors while conducting audits of financial year 2019-20.

The ICAI has also issued a series of auditing guidance covering specific auditing aspects – going concern, inventory verification, subsequent events and auditor’s reporting – to provide guidance to auditors under the Covid-19 scenario, Gupta said. All these steps including webinars and regular webcasts with focus on special considerations for auditors under the current Covid-19 situation have helped to maintain audit quality during this pandemic, he added.

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