Companies that require their accounts to be audited, and hold significant levels of stock at their year-end, expect a visit from their auditors annually to perform test counts of their stock.
However, during the current lockdown, auditors are considering other ways to gain the assurance they need over the stock levels held. Some suggestions include:
- Virtual attendance, such as over video call
- Attending at an alternative date
- Obtaining a confirmation for stock held by third parties
- Extending the accounts year end (this may have other implications, however)
The above solutions would require some consideration to each company’s circumstances and whether the auditor can gain enough assurance over stock using these methods.
We are in touch with all of our clients as their year-ends approach to discuss alternative methods of gaining this assurance, planning alongside our clients for the best solution for them and the business itself.