Audit Implications on The Financial Reporting Process in Pakistani Companies During Covid-19

Abstract

Purpose

This study has been conducted in Pakistan to examine the impact of Covid-19 on the audit of financial reporting of companies. The audit is conducted to get a reasonable assurance on the financial reporting of the company asserted by the management.

Methods

For the purpose of this research, primary data has been used which is collected through online questionnaire form. A sample of 100 respondents has been collected, belonging to the field of external auditing. Risk assessment, audit evidence and going concern are taken as independent variables and audit implications are taken as dependent variables to study the impact of Covid-19. All descriptive analysis, diagnostics tests and regression were applied for comprehensive data analysis.

Results/Findings

It is concluded that there are difficulties related to accessing the resources for audit, the auditors are also facing issues with respect to problems and queries solving and auditors need to put up more efforts in order to develop the independent opinion.

Novelty/originality of the study

Covid-19 has resulted in many challenges to the auditors in terms of different aspects required to develop an independent opinion. This study provides guidelines to auditors for any sort of unfortunate future pandemic situation.