Auditor’s Risk Assessment during COVID-19 in UAE

COVID-19 has ceased the flow of businesses and has caused a tremendous effect on the economy. The disruption in the business has forced people to adopt new methods and techniques to overcome this crisis. The present-day world has never experienced this kind of situation before, and it has led them to a dilemma on how to cope up with this current scenario.

The unprecedented turn of events has put much pressure on the financial department of every entity. The auditor’s risk is at its peak in such cases as proper identification and assessment are necessary. Specific new issues may occur with such drastic situations at rising, which may include:

• Liquidity, access to capital, debt covenant compliance
• Cyber security
• Changes in internal controls over financial reporting as everything is done in the virtual environment
• Asset and goodwill impairment
• Fair value estimates
• Third-party vendor considerations
• Business interruption

The Auditor’s Risk

• A breakdown in the internal control over financial reporting could occur due to the change in the work atmosphere of the personals.
• Fraudulent practices may be high at this juncture due to changing incentives or increased pressures on management. Disruption on the internal control over financial reporting due to the override of managerial controls may all cause new risks of material misstatement.
• Investigations on fraud are one of the essential duties of an auditor, as the current circumstances do not allow any in-person inquiries; on the other hand, the virtual world provides us with vast opportunities of video conferencing which enables the auditors to monitor the body languages as well.
• Revision is to be considered due to the changing environment of COVID-19. Any situation demands proper review; in the current circumstance, the consumer behavior and the retail re-opening may have rapid changes throughout the year. It requires the auditor be to at alert and have constant updates on the changing environment.
• The assessed risks may not be adequate at times which requires the auditors to modify planned audit procedures or design new procedures. An auditor should be ready to face the consequences and should have a proper plan to deal with the same.
• Here are some reminders to the auditors in modifying procedures or designing new procedures;
  • To enhance the direction and supervision of less experienced team members and to modify and review the nature and extent of their work.
  • To seek the assistance of senior or experienced members during complex issues.
  • To increase the involvement of specialists or include others with specialized skills.
  • To include engagements where other auditors are involved.
  • To develop alternative approaches, especially by making use of the available technology.
• The auditors are to create and exercise a questioning mind throughout the audit and develop professional scepticism in gathering and evaluating evidence. It is also vital for the auditors to check the relevance and reliability of the audit evidence.

Auditors are required to communicate with the audit committee to ensure risks are adequately identified, assessed and responded to.

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Varun R Chandra

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

Giuseppe Assi

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more

Mohamed Sheriff

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more

218141 JOSEPH THOMAS

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more

PMI

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more

RAVI CHOKSI

08:28 21 Jun 20

Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more

Maharajan Subramaniam

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more

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08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more

ROY ROSHAN VIVIAN

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more

Basil Daniells

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more

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19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more

Radz de Jesus

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more

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