The outbreak of COVID-19 compelled the government to impose lockdowns, self-quarantine, travel bans, and social distancing measures to contain its further spread.
This changed the way of working for both businesses and accounting professionals. Although such measures were necessary, it posed challenges for the auditors to access the client locations in order to obtain appropriate audit evidence which is the backbone of the audit process.
To help chartered accountants carry out a quality audit, with proper compliance to the auditing standards, the Institute of Chartered Accountants of India (ICAI) took a number of initiatives for its members enabling them to carry out their duties and responsibility seamlessly.
The very purpose of the audit is to formulate an independent opinion on the financial statements of the entity audited. Giving a true and fair view about the audited financial statements makes them credible to be used for information by various stakeholders.
Thus, to help auditors undertake quality audits and issue audit reports and certificates, ICAI made an announcement calling the attention of its members for using an electronic signature for signing audit reports and certificates.
This is in addition to the guidelines issued by ICAI on on ‘Impact of Coronavirus on Financial Reporting and Auditing of Financial Statements’ earlier.