COVID-19 is affecting businesses in many ways, including their financial reporting, in particular for 31 March 2020 reporters.
These matters will also, in many cases, impact the audit reports on the 31 March 2020 financial statements (and potentially for subsequent reporting year ends). Directors have raised concerns with auditors about how banks and other stakeholders may interpret entities audit reports. Many entities have covenants that may not be fully met with an unqualified audit report. We are dealing with a unique set of circumstances. Some of these mean the auditor has no option but to qualify the audit report.
In this paper we outline some of the scenarios we expect to see in audit reports over the coming months.
If you have any questions or would like to know more, please get in touch.
This content is accurate as at 06 May 2020. This content is for general information purposes only, and should not be used as a substitute for consultation with our professional advisors. If you wish to understand the potential implications of COVID-19 for your business, please get in touch. To find an advisor and to see more of our general guidance for businesses, please visit our COVID-19 webpage at www.pwc.co.nz/covid-19.