Four Auditors Respond to Critical Question About COVID-19 Disruptions

The question was simple. Unfortunately, the circumstances behind the question are not.

During a webinar last week hosted by the American Institute of Certified Public Accountants, a panel of four auditors was asked the question “What have you found to be most challenging to your single audit practice as a result of the COVID-19 pandemic?” The following were the responses:

Stephen Blann, CPA, a principal with Rehmann Robson L.L.C.: “The biggest challenge has been the waiting game. It takes time to respond to a developing situation and federal guidance that has come out has been spread out. A lot of auditors have been nervous to begin audit procedures. Some organizations didn’t feel they had the information necessary when they spent the money to allow auditors to conduct audits. That delayed the whole [audit] season and left a lot of uncertainty in the air.”

Thomas Sneeringer, a partner at RSM L.L.P.: “One of our biggest challenges was the approach we take with our single audit clients. We normally do the financial statement audit and the single audit at the same time, and our clients become accustomed to us delivering those audits at the same time. Now, we have made the choice not to finalize single audits if the entity received COVID-19 funding as part of the current Schedule of Expenditures of Federal Awards. That created documentation challenges as we usually have lock down requirements after we issue an audit, so now we are using some alternative files to take care of the single audit portion. That was a different process than we normally use.”

Lindsey Oakley, a partner with BKD, L.L.P.: “We’ve been challenged to keep up with all of the guidance from the agencies. The money went out first and then the regulations followed, so some auditors may have a hard time keeping up with everything.”

Erica Forhan, a partner with Moss Adams L.L.P.: “We are always concerned about quality and ensuring the auditor maintains quality considering these conditions. Auditors are working remotely with clients and that creates some adjustments. There also is a rush now to get some of these audits out now that auditors can follow the 2020 Compliance Supplement addendum. I’m always concerned whether auditors are slowing down enough to conduct the audit correctly with a clear mind while doing their work.”

These responses highlight an interesting dynamic. While grant applicants and recipients may be focusing on their own challenges they are facing when dealing with disruptions created by the COVID-19 pandemic, their auditors are facing their own issues as well. Everyone is affected during this period, and we can expect that “a return to normal” is not coming any time soon. Hopefully, with some patience and diligence, everyone involved in the full grants lifecycle, from application through audit, can get through these tough times with a mutual understanding of concerns faced by all parties involved.

Join us for our following Thompson Grants event:
Virtual Federal Grants Forum | February 23-25, 2021