2020 has thrown us some major curveballs. Despite the many disruptions of this global pandemic, the team at Christianson wants you to remember that your annual financial statement audit must go on. It may look a little different than it has in the past, so we encourage you to consider the following as you prepare for your year-end audit.
- Prepare for remote inventory observation and audit fieldwork
- Government restrictions and/or company policies may limit your auditor’s ability to travel this year. At Christianson, we’ve been performing remote inventory observations and remote audit fieldwork for over a decade in order to serve our clients across the nation. We’ve developed a streamlined process to perform your audit efficiently and effectively from our office.
- If this is your first remote inventory observation, schedule a test run with your auditor prior to year-end to work through potential technological issues.
- Set aside time for remote audit fieldwork just as you would if your auditor was onsite and hold virtual face to face meetings on a regular basis throughout the audit.
- Be proactive in communicating with lenders
- Are your loans subject to financial covenants that are difficult to meet in the current economic environment? Reach out to your lender before year-end to discuss potential covenant violations and your options.
- Will your lender be willing to issue a waiver? If yes, what documentation will your lender require, what is their timeline, and will they charge you a processing fee?
- Communicate changes in internal controls to your auditor
- Accounting duties and processes may have been modified to accommodate employees working from home. In addition, IT security restrictions may have been lifted to enable offsite access to applications and files. Document these changes and talk through any concerns you have with your auditor.
The team at Christianson wants to ensure you are equipped with the knowledge you need to be prepared for the many changes you may have to face. Contact our experts with questions as you prepare for your audit. We’re here to help.
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