A Challenge to Auditors

Verifying financial statements during the coronavirus pandemic is putting further strain on the Audit Board of the Republic of Indonesia (BPK).

Typically auditors meet with personnel of public institutions in their offices, visit factories and warehouses, and rely on personal interactions and observations to make assessments. During the pandemic, they are left with health protocol.

Public institutions also are having a tougher time complying with accounting rules that require financial projections, such as performing valuations and estimating potential asset impairments, due in part to economic uncertainty. That presents a challenge to auditors, who have to assess whether such projections are viable or not.

“Auditors have more discussions than usual with students and employees, but may have trouble digging into complex, technical accounting issues due to this pandemic,” said Nazula Elva Rahma Head of FEBI’s General Affairs.

Courtesy: medium.com