Complex Financial Statement Reporting and Auditing Issues
COVID-19 has created significant financial statement challenges. Auditors and financial statement preparers need to ensure that the financial statements and related footnote disclosures are fairly presented within the scope of the pandemic and its effects.
By Allison Henry, PICPA vice president, professional and technical standards
COVID-19 has created significant financial statement challenges, including accounting for business interruption claims and other contingencies, the impact of changes to business operations on the footnote disclosures, new and challenging risks and uncertainties, and material subsequent events such as the declaration of the state of emergency, receipt of PPP loan proceeds, refinancing, and challenges to the going concern assumption inherent in the financial presentation. Auditors and financial statement preparers need to be well versed on these topics to ensure that the financial statements and related footnote disclosures are fairly presented. This video presentation can help clarify the situation, but I will dive into even greater detail at PICPA's Accounting and Auditing Conference on Dec. 10-11, 2020.
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Disclaimer
Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.
