Economic conditions and financial markets were significantly affected by the coronavirus that swept around the world in 2020. A decade earlier, a similar phenomenon was caused by the global financial crisis that began in 2008. Love and Lawson identified a series of specific issues flowing from the crisis that must be considered by financial statement auditors and that may affect the procedures used in conducting an audit.

Required Explain the impact of the 2008 global financial crisis on decisions about the nature, timing, and extent of substantive testing. Give some specific examples of the impact on analytical procedures. Explain how auditors would adjust their audit programs to ensure that overall audit risk remains acceptable.