ICAI to issue advisory on dealing with coronavirus impact on auditing work

Chartered accountants' apex body ICAI will be issuing an advisory to auditors on how to deal with the coronavirus pandemic impact, mainly on auditing work.

The Institute of Chartered Accountants of India (ICAI) has already started work on the advisory, which would be submitted to the corporate affairs ministry, according to the institute's President Atul Kumar Gupta.

"We are developing a document for corporates as well as auditors in the form of an advisory... It will be released before March 31," he told PTI.

The current financial year (2019-20) ends on March 31.

"It will be an advisory for auditors and companies on how to deal with the impact of the coronavirus outbreak," Gupta said.

According to him, banks close their accounts on March 31 and generally bank branch audits are to be completed by April 10.

In the wake of the coronavirus outbreak, the date for such audits has now been set at April 20.

"All of us have to wait and watch on the impact of the coronavirus," Gupta said.

When asked whether the ICAI would look at seeking more time for carrying out statutory audits of companies in the current situation, he said there is no need to worry about it since statutory audits are to be completed in six months from the end of a financial year.

More than 150 people in the country have been infected by the coronavirus and various sectors have been substantially impacted so far.