Risk Assessment and Auditors' Responsibilities: An Assessment of COVID-19 Era

Abstract

There has been uncertainties and high apprehension of the possible impact of COVID-19 era on corporate organizations' earnings and the global economies at large. Prior studies have predicted high audit risks and expect auditors carry out detailed risk assessments of the clients for material misstatements in line with auditors responsibilities. Consequently, this study examined risk assessment and auditors' responsibilities, an assessment of COVID-19 era. In carrying out this examination, exploratory research approach was adopted, as previous literature, journals and materials related to the study were reviewed. The study revealed that quality of internal control and effective control measures in corporate organizations are panacea to quality risk assessments. Auditors aware of audit risk and responsibilities, are motivated to ensure thorough risk assessment comparing the likely variances from prior year's reports audit. The study recommended that management should ensure quality internal audit and internal audit units. Auditors are advised to ensure exhibition of high level of efficiency, professional competence and due care in discharging auditor responsibilities. Aware of risk liabilities, auditors should ensure all-inclusive and holistic risk assessments of clients' books and proffer professional advice where necessary considering the obvious implications of COVID-19 on corporate organizations ‘operations and earnings.