Alert No.

003

Series of 2020 September 2020

To : Philippine Institute of Certified Public Accountants

(thru: Mr. Lope S. Bato, President)

Association of CPAs in Public Practice

(thru: Ms. Anita C. Rodriguez, President)

Association of Certified Public Accountants

in Commerce and Industry

(thru: Atty. Walter L. Abela, Jr., President)

National Association of CPAs in Education

(thru: Dr. Florenz C. Tugas, President)

Government Association of Certified Public Accountants

(thru: Atty. Fidela M. Tan, President)

Securities and Exchange Commission

(thru: Atty. Emilio B. Aquino/

Atty. Emmanuel Y. Artiza, Representative)

Bangko Sentral ng Pilipinas

(thru: Ms. Lyn I. Javier, Representative)

Subject: Audit Considerations for the Impact of COVID-19 – Part 1

A. Background Information

In response to auditing challenges and circumstances brought about by the COVID-19

pandemic, which continues to disrupt markets, businesses and organizations, the

International Auditing and Assurance Standards Board (IAASB) has published a number of

Staff Audit Practice Alerts (SAPAs). The Auditing and Assurance Standards Council (AASC)

has also been closely monitoring these developments and has evaluated the applicability in

the Philippines of the SAPAs issued by the IAASB. It has accordingly decided to issue an

AASC Alert on Audit Considerations for the Impact of COVID-19 in parts. This AASC Alert is

Part 1 and covers SAPAs related to Going Concern, Subsequent Events and Auditor

Reporting.

B. Adoption of IAASB SAPAs in the Philippines

The AASC has approved on July 13, 2020 the adoption in full context of the following IAASB

Staff Audit Practice Alerts:

a. Going Concern in the Current Evolving Environment–Audit Considerations for the Impact
of COVID-19;

b. Subsequent Events in the Current Evolving Environment–Audit Considerations for the

Impact of COVID-19; and

c. Auditor Reporting in the Current Evolving Environment Due to COVID-19.

See Attachments 1, 2 and 3, respectively, for the said IAASB SAPAs.

AASC Alert No. 003

Series of 2020 September 2020

AASC’s adoption of the foregoing three IAASB SAPAs does not supersede but supplements

Philippine Auditing Practice Note (PAPN) No.001 Series of 2020, Audit Considerations on the

Occurrence of an Extraordinary Event, which was issued by the AASC in April 2020 in

response to COVID-19 related auditing issues. PAPN No. 001 provides guidance on the

application of Philippine Standards on Auditing (PSAs) when any extraordinary event takes

place during the conduct of an audit of financial statements while SAPAs are specific to

COVID-19.

* * * *

This AASC Alert is not a substitute to reading the PSAs. The Alert is a technical paper issued to

provide guidance to external auditors.

Law

NOE G. QUIÑANOLA LEONARDO D. CUARESMA, JR.

Chairman, Board of Accountancy Chairman, Auditing and Assurance

Standards Council

Attachment 1

IAASB Staff Audit Practice Alert

Going Concern in the Current Evolving Environment–Audit

Considerations for the Impact of COVID-19

 Attachment 2

IAASB Staff Audit Practice Alert

Subsequent Events in the Current Evolving Environment–Audit

Considerations for the Impact of COVID-19
 Attachment 3

IAASB Staff Audit Practice Alert

Auditor Reporting in the Current Evolving Environment

Due to COVID-19
 PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY
AND
AUDITING AND ASSURANCE STANDARDS COUNCIL
Joint Resolution No. 004
Series of 2020

AUDIT CONSIDERATIONS FOR THE IMPACT OF COVID-19 – PART 1

WHEREAS, the COVID-19 pandemic continues to disrupt markets, businesses and organizations
globally causing significant auditing challenges and circumstances that make the work of audit
practitioners more complicated than usual;

WHEREAS, the Auditing and Assurance Standards Council (AASC) is well aware of said challenges
and circumstances and it has been consistently looking for ways to guide audit practitioners in the
Philippines; hence, its issuance of Philippine Auditing Practice Note (PAPN) No.001 Series of 2020,
Audit Considerations on the Occurrence of an Extraordinary Event, in April 2020;

WHEREAS, the International Auditing and Assurance Standards Board (IAASB) has published several
Staff Audit Practice Alerts (SAPAs) in response to the auditing challenges and circumstances brought
about by the COVID-19 pandemic;

WHEREAS, the AASC evaluated the applicability in the Philippines of the IAASB SAPAs and it has
concluded that those would supplement PAPN No. 001;

WHEREAS, the AASC decided to adopt in the Philippines the applicable IAASB SAPAs in their
entirety and issue an Alert on Audit Considerations for the Impact of COVID-19 in parts;

WHEREAS, Part 1 of the AASC Alert covers IAASB SAPAs related to Going Concern, Subsequent
Events and Auditor Reporting.

NOW, THEREFORE, the Philippine Regulatory Board of Accountancy and the AASC hereby
RESOLVE to approve AASC Alert No. 003, Audit Considerations for the Impact of COVID-19 – Part 1,
and the circulation by the AASC of copies of the Alert to the intended organizations of certified public
accountants which include the Philippine Institute of Certified Public Accountants, Association of
Certified Public Accountants in Public Practice, Association of Certified Public Accountants in
Commerce and Industry, National Association of Certified Public Accountants in Education and
Government Association of Certified Public Accountants; and relevant government agencies such as
the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas.

This Joint Resolution shall take effect immediately.

Done this _____ day of _______________ 2020.

JOINT RESOLUTION NO. 004
SERIES OF 2020
AUDIT CONSIDERATIONS FOR THE
IMPACT OF COVID-19 – PART 1

AUDITING AND ASSURANCE STANDARDS COUNCIL

Law
LEONARDO D. CUARESMA, JR.
Chairperson

SHARON G. DAYOAN JOHN-JOHN PATRICK V. LIM

Vice-Chairperson and Treasurer Assistant Treasurer

EMILIO B. AQUINO/ HAYDEE M. REYES-ARCENAS ANNALYN B. ARTUZ

EMMANUEL Y. ARTIZA

WILFREDO A. BALTAZAR LUCY LIM -CHAN ROSEMARY D. DE MESA

MA. CORAZON ENRIQUEZ RAMON F. GARCIA LYN I. JAVIER

MA. CONCEPCION Y. LUPISAN ARNOLD NAVALES ANITA C. RODRIGUEZ

JOSE JOEL M. SEBASTIAN FIDELA M. TAN ARLYN S. VILLANUEVA

JOINT RESOLUTION NO. 004
SERIES OF 2020
AUDIT CONSIDERATIONS FOR THE
IMPACT OF COVID-19 – PART 1

BOARD OF ACCOUNTANCY

NOE G. QUIÑANOLA
Chairman

THELMA S. CIUDADANO
Vice-Chairman

GLORIA T. BAYSA SAMUEL B. PADILLA

Member Member

ARLYN S. VILLANUEVA GERVACIO I. PIATOR

Member Member

VACANT

Member