Covid 19 Impact On Financial Reporting And Auditing by Kamal Garg, Wolters Kluwer

World Health Organisation (WHO) declared the novel Coronavirus (COVID-19) a pandemic. The financial reporting and auditing impacts due to COVID 19 outbreak will depend on facts and circumstances, including the degree to which a company’s operations are exposed to the impacts of the outbreak.  Many regulators have already pronounced relaxations in the time limits for meeting the compliances and some more relaxations are about to follow in the next few days.

There are number of auditing and financial matters, which are impacted due to COVID-19. The author has covered these impacts on financial reporting and auditing in detail. The book has covered the impact under Accounting and Auditing separately under the various topics like: Classification into current and non-current items, Materiality, Events after reporting periods, Going concerns, Inventory Valuation , Fixed Asset issues, Revenue, Employee Benefits, Financial Instruments, Provisions & Contingent liabilities,  Leases, Govt. Grants, Income Taxes, Interim Financial Reporting, Internal Control,  and Electronic Means of Communication for auditor. Impact on auditing has been analysed with reference of Auditing Standards, Companies Act, 2013, CARO 2016 Reporting, Guidance Notes issued by ICAI and followed by illustrative reporting paragraphs. All the topics mentioned above have been further accompanied with the illustrative reporting paras under KAM. Impact on Financial reporting issues have been thoroughly discussed as per AS and Ind AS and other applicable provisions. All possible disclosures in notes of financial statement of a company are covered, which are relevant for investors, lenders and other users.

Discussion of COVID-19 impact on Financial Reporting and Auditing

Accounting impact discussed with AS & IND AS and Schedule III of Companies Act, 2013

Auditing impact analyzed with Auditing Standards, Companies Act, 2013, CARO, 2016 and ICAI Guidance Notes

Specimen reporting paragraphs for audit reports for AS and Ind AS compliant companies

Specimen KAM and EOM reporting paragraphs

Re SEBI-LODR implications/ Electronic Audit Evidence/ Digitally Signed Audit Report

Specimen reporting paragraphs under CARO, 2016

Relevant Circulars/Notifications/Releases issued by SEBI/MCA/RBI

Kamal Garg :CA. Kamal Garg [B. Com (H), FCA, DISA (ICAI), Insolvency Professional] is a Fellow Member of The Institute of Chartered Accountants of India (ICAI) and a First Class Commerce Baccalaureate from Deen Dayal Upadhyaya College, University of Delhi and a consulting academician in KGMA, Delhi. He was also the member of Board of Studies (BOS) Study Material Research Group (2009-2010) of NIRC of ICAI and a special invitee member of Accounting Standards Board (ASB) (2012-2013) and Ind AS (IFRS) Implementation Committee (2014-2015) of ICAI. He is also the faculty member of Ethical Standards Board (ESB) of ICAI and had an opportunity to act as a speaker in the very Ist Live Webcast held by ESB of ICAI in March 2013. He is also a key resource person for development and review of various study contents and webcasts for BOS of ICAI, such as study material and practice manual on Advanced Auditing for CA Final, eLectures for CA IPCC and CA Final studies, etc. Besides being a regular guest speaker for IFRS and Management Development Programmes at IBC & PKG, Mumbai, ICAI, ICSI, he is also an author of over dozens of books including ‘Ind AS- A Ready Reckoner’ ‘Standards on Auditing- A Practitioners Guide’, ‘Voluntary Liquidation of Companies under Insolvency and Bankruptcy Code, 2016 – Law, Practice and Procedure’ ‘Guide to Tax Audit u/s 44AB’, ‘Foreign Direct Investments in India’, ‘IFRS and Ind-AS Concepts and Applications’, ‘Accounting Standards and IFRS’, ‘Auditors’ Practice Manual’, ‘Handbook on Company’s Balance Sheet and Profit & Loss Account under Revised Schedule VI and XBRL’, ‘Handbook on Internal Auditing’, ‘Consolidated Financial Statements’, ‘Interim Financial Reporting’, ‘Guide to International Taxation’, ‘Understanding Goods and Service Tax (GST)’, ‘Professional Approach to Advanced Auditing’ for CA (Final) studies and ‘Systematic Approach to Auditing’ for CA IPCC studies published by Bharat Law House Private Limited. He has to his credit the contribution of ‘Gist of Accounting Standards and Auditing and Assurance Standards’ for Vol. 2 of Company Law published by Bharat Law House and various articles for NIRC and CIRC of ICAI Newsletter on FBT, MAT, SOX, CARO, FEMA, etc. and a series of articles on ‘Delhi Value Added Tax (DVAT) – Taxation, Accounting and Auditing Aspects’ for the Journal Tax and Corporate Referencer (TCR) including various articles on External Commercial Borrowings (ECB), Direct Taxes and Foreign Investments for TCR. He possesses a rich industry experience in the areas of Corporate Laws (like Companies Act, FEMA, Taxation, Foreign Collaborations, Joint Ventures, etc.), Audits and Management Consultancy.