Covid-19 crisis makes 'going concern' calls more challenging

Auditors are finding it tough to offer an unqualified opinion amid uncertainties and restrictions

Angela Tan

Published Fri, May 1, 2020 · 09:50 PM

Singapore

THE novel coronavirus, or Covid-19, is posing challenges for auditors when judging whether a company can continue trading as a going concern for the next 12 months.

Difficulties include making judgements in uncharted waters where core assumptions have changed, restrictions on typical auditing duties and pushback from clients who want to pass their audits.

"It is likely that auditors will face considerable challenges from their clients in relation to any indication that they must qualify their opinion for lack of evidence or disagreements with directors on issues such as material uncertainty," said lawyers from Clyde & Co.

Given the difficult economic climate, most clients would be worried about the consequences that an official question mark over a company's viability - known as a qualified audit - would hav…