Tailor-made audit programs of going concern in the COVID–19 pandemic

Abstract

This study aims to explore the opinions of auditors and audit assistants regarding risk assessments and risk responses whether there is substantial doubt about the entity's ability to continue as a going concern. Data collection tool is a questionnaire survey. The statistical analysis comprises of both descriptive and inferential statistics: Independent Sample T-Test and One-Way ANOVA.

The analysis reveals that respondents are more likely to put their effort on substantive tests than the assessment of inherent risks and control risks. On substantive tests, they focus on examining subsequent events and pay less concern on examining unusual of list of stakeholders. On risk assessments, the respondents put more effort on reading minutes of shareholders’ meeting, board of directors’ meeting, and other directors’ meeting and pay less concern on verifying the entity has been denied on credit granting from creditors. Furthermore, the study attempts to identify factors affecting the determination of audit programs of going concern. It is found that, at 0.05 significant level, the analysis reveals different factors influencing going concern audit programs including that types of audit firms, qualified as certified public accountant, client size and auditors of listed companies. This study helps auditors to develop audit plans when clients are substantial doubt about the entity's ability to continue as a going concern.