Research Article
Auditing Financial Statements during Covid-19 Outbreak: Case Study in ABC Indonesian Public Accounting Firm
@INPROCEEDINGS{10.4108/eai.27-7-2021.2316905, author={Retno Hapsari Kusuma Wardhani and Agung Nugroho Soedibyo}, title={Auditing Financial Statements during Covid-19 Outbreak: Case Study in ABC Indonesian Public Accounting Firm}, proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICE-BEES}, year={2022}, month={3}, keywords={financial statements audit audit risk technology audit evidence regulator}, doi={10.4108/eai.27-7-2021.2316905} }- Retno Hapsari Kusuma Wardhani
Agung Nugroho Soedibyo
Year: 2022
Auditing Financial Statements during Covid-19 Outbreak: Case Study in ABC Indonesian Public Accounting Firm
ICE-BEES
EAI
DOI: 10.4108/eai.27-7-2021.2316905
Abstract
This study explores approaches taken by auditors in ABC Public Accounting Firm in responding to audit of financial statements during the COVID-19 outbreak and comparing them to several Indonesian Public Accounting Firms. The qualitative approach was used in this case study. Data analysis was examined by conducting participatory interviews with auditors in ABC and collecting questionnaires survey to twelve respondents in six Indonesian Public Accounting Firms. This study shows an increment in audit risk since most of the audit clients experienced a declining financial statements performance during the outbreak, which requires a corroborative review of going concern assessment. Increment of going concern risk level also required further reviews of subsequent events assessment to obtain reliable and sufficient audit evidence. In certain cases, auditor needs to consider the necessity of additional financial statements disclosure and additional emphasis paragraph on the auditor’s report. Furthermore, technology platform acceleration has a significant role as an alternative to obtain audit evidence during the outbreak. More audit processes are carried out online and an extensive communication between auditors and audit clients is required when the audit deadline needs to be rescheduled to comply with the audited financial statements submission requirement to the regulator.