As audit season begins for British companies, some auditors stuck at home in coronavirus lockdown are turning to cameras to check clients' inventories, plant and equipment for compiling annual accounts.
LONDON - As audit season begins for British companies, some auditors stuck at home in coronavirus lockdown are turning to cameras to check clients’ inventories, plant and equipment for compiling annual accounts.
One option is to use cameras already installed in a company’s warehouse to verify its stock levels. Another idea for checking on a company’s car inventory, for example, is to film live each vehicle identification number one by one, Bob Neate, head of UK audit at Mazars, said. “There are noises that some accountancy firms are avoiding signing off audit reports until things become clearer,” said Knight, who did not say if using cameras was an option.
“We have formed a view that it is unlikely that using a camera on its own would give us the evidence we need,” he said. “We would like clearer guidelines on what’s acceptable. The FRC recognises the challenge but we as auditors have to make a decision on what is acceptable,” Neate said.Companies usually have four months after the end of their financial year to publish an annual financial statement. Last week British regulators gave them an extra two months to the end of September.
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