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Auditing Alert On Going Concern Subsequent Events Events Andd Covid 19 Impacts September2020 PDF
Auditing Alert On Going Concern Subsequent Events Events Andd Covid 19 Impacts September2020 PDF
003
A. Background Information
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.
The AASC has approved on July 13, 2020 the adoption in full context of the following IAASB
a. Going Concern in the Current Evolving Environment–Audit Considerations for the Impact
of COVID-19;
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
Law
Standards Council
Attachment 1
Attachment 2
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.
Law
LEONARDO D. CUARESMA, JR.
Chairperson
BOARD OF ACCOUNTANCY
NOE G. QUIÑANOLA
Chairman
THELMA S. CIUDADANO
Vice-Chairman
VACANT
Member