How is Deloitte Audit responding to the risks of

Transcript:How is Deloitte Audit responding to the risks of:
How is Deloitte Audit responding to the risks of COVID–19 April 2020 How is Deloitte Audit responding to the risks of COVID-19? The impact on your audit Deloitte has been closely monitoring and managing our response to the COVID-19 situation since its inception in order to be able to respond as necessary. The health and safety of our people is paramount, but we are doing our utmost to ensure we can complete audits to required timetables while adhering to the highest audit quality standards. We summarise below how we are responding. How is Deloitte Audit responding to the risks of COVID-19? The impact on your audit Refer to the latest information on the COVID-19 page on the Rocket General extension of financial reporting periods granted by the JSE The impact on your audit On 3 April 2020 the JSE announced that issuers with year-ends of 31 December 2019, 31 January 2020, 29 February 2020 and 31 March 2020 will receive temporary relief of two months within which to complete their year-end financial reporting process should this be required by the issuers. The Relief will enable issuers to carefully consider and unpack the IFRS implications of the impact of COVID-19. The JSE indicated that the expect to see enhanced disclosures relating to the impact of COVID-19 on issuers during this time, which can be time consuming. The JSE has in addition considered that tight reporting deadlines in this time of uncertainty could be an aggravating factor leading to the issuance of modified audit reports. The Relief should assist in removing such obstacles, as well as any potential impediment to quality audits. The JSE urged issuers to consider all aspects of their financial information publication timelines so as to make appropriate use of the Relief and thereafter to communicate these to the market via SENS. Reporting in uncertain times 1 2 3 4 5 Potential diminished demand for products or services; Observed reduced trading and volume reductions; Impact on revenues compared to prior periods or budgets; Manufacturing interruptions; Impact on supply chains; Any short term observations on customers’ ability to make or delay payments; and Increase in costs (and reduced profit margins) due to forex movements which cannot be passed on the customers. Cash resources currently to the company’s disposal: The amount of cash and cash equivalents available to the company; Any restrictions imposed on accessing cash especially cross borders (including exchange