In 2020, Ernest & Young accounting firm did a survey on the severity of the COVID-19 impact on businesses. It was concluded that business entities were badly affected by the COVID-19 pandemic. Some of the impacts include weak economic and financial results, demand cutbacks, and supply chain disruptions. To address these problems, an increasing need for higher technology capabilities to connect businesses, customers, and supply networks is suggested. In fact, COVID-19 has forced businesses to embrace digitalization.

Required:

a. Discuss two (2) audit risks that the COVID-19 pandemic has caused. (4 marks)

b. Advise the junior auditor on how to address the audit risks faced by the digitalized economies due to the COVID-19 pandemic. (4 marks)

Subject : Auditing and Assurane Services