Lockdown expected to delay client results and accounts, KPMG says
The current national lockdown across England is expected to delay the announcement of results and accounts of clients, KPMG UK has said.
The Big Four firm told City PM it is expecting and preparing to delay the announcement of results and accounts of some of the entities it audits.
England entered a second national lockdown earlier this week after the transmission rate of the Covid-19 virus and the number of cases increased across the country.
When asked how the new lockdown will affect the giant’s auditing process, KPMG UK head of audit Jon Holt said: “While a significant amount of audit work can be done virtually, there are some aspects that have required our auditors to adapt their procedures – such as using technology to perform inventory counts and inquiries with members of staff.
“We expect – and are preparing for – the fact that as a result of the pandemic there may be more cases where the right thing to do in the public interest is to delay our opinion and the announcement of results and accounts.
“It is likely that more work will need to be done by both preparers and auditors – particularly where estimates use recent or future cash flows as the basis of an assumption.”
In August fellow Big Four consultancy firm PwC announced plans to delay its own annual results by four months because the coronavirus slowdown means it is unsure of what to pay partners and what to distribute in staff bonuses.