Implications of Covid-19 on Auditor’s Reporting

Abstract

<p align="center"><strong>Abstract</strong></p><p>Twenty years ago, nobody will ever think that the world will experience what we are experiencing right now. The whole world had been put in uncertainty due to pandemic which started from the city of Wuhan, China. This pandemic called COVID-19 had affected everyone’s life including many companies in Indonesia. It has impact on audit quality. Matters are analyzed through input/output based on Francis (2011) and Knechel (2010). This research adopts desk study method to investigate the impact of COVID-19 to audit quality. It suggests the improvement of the regulations (time, and fee), the auditor’s matters (experience, routine, and client). Quality can be based not only by the auditing report as the product from the activity, but from the engagement from the output of this report for long term horizon.</p>

The Impact Of Covid-19 On Audit Quality And Procedures For External Auditors (Literature Review)

“…Research [14]that analyzes the impact of the pandemic on audit quality found the conclusion that the existence of the Covid-19 pandemic requires external auditors to need more time to evaluate the continuity of a client's business. Meanwhile,research conducted by [19] and [20] found differences in the impact caused by the co-19 pandemic. [19] in his research, it was stated that the existence of the Covid-19 pandemic had a large impact when viewed from an auditor's perspective.…”

“…According to [11]Covid-19 has a significant and negative impact on audit procedures. Among the negative consequences of the impact of Covid-19 Pandemic on the quality of auditing are the procedures that led to the implementation of the work from home [12] External Auditors External audit is an examination carried out by outsiders who are not employees of the company, who are free and impartial both to their clients and to parties who have an interest in their clients. These external audit services are usually carried out by a professional specialization, namely a public accountant who has been recognized by the Ministry of Finance of the Republic of Indonesia to carry out this work.…”

Impact of the COVID-19 Pandemic on Audit Quality: Lessons and Opportunities

“…Firms may request a reduction in audit fees from auditing firms through working hours and audit efforts to increase during a pandemic [1]. There is an impact of COVID-19 on audit fees, which contributes to reducing the quality of auditing [29]. As a result of stopping or decreasing financial operations, auditors may be exposed to pressure from the companies and institutions they work with or from clients to reduce audit fees during risk situations COVID-19, and thus the decrease in audit fees may affect the quality of the audit [8].…”

“…The audit procedures may be affected by COVID-19, the audit procedures being an essential part of the audit process. Among the negative consequences of the impact of COVID-19 on the quality of auditing are the procedures that led to the implementation of the work from home [29]. Analytical procedures are an essential part of an audit of financial statements [30].…”

Analisis Kualitas Audit Pada Masa Pandemi Covid-19

“…(1) Prosedur analitis (analytical procedures) (2) Inspeksi (inspecting) (3) Konfirmasi (confirming) (4) Permintaan keterangan (inquiring) (5) Penghitungan (counting) ( 6) Penelusuran (tracing) (7) Pemeriksaan bukti pendukung (vouching) (8) Pengamatan (observing) (9) Pelaksanaan ulang (reperforming) (10)…”