Covid: Auditors struggle to meet compliances | Economic Times

Auditors are struggling to meet year-end compliance deadlines for listed companies due to the mobility curbs imposed by several states to prevent a further surge in the second wave of coronavirus infections.Sebi rules require a company to file its annual report within 60 days from the end of the financial year (FY ends on March 31 and the filing deadline is May 31). The annual reports must contain all the necessary audit reports.Auditors must undertake several checks, including a physical examination of factories and machinery, and also provide their opinion on issues such as impairment of assets. For this, they must make physical visits to factories and plants of the companies. However, several state governments have started imposing restrictions on the movement of people and opening of factories. 82186691Additionally, many auditors and compliance experts have been affected. Industry estimates suggest that a fifth of the current workforce has been adversely hit, directly or indirectly. Some have tested positive, the others are spending time in self-quarantine after coming in contact with people who tested positive.“Either team members are infected or someone in their family is infected and you cannot ask them to work under such circumstances. At the same time, clients are also facing similar situations,” said Sumit Maheshwari, partner, AKM Global.He added that it was increasingly difficult to convince his team members to visit offices of clients and conduct stock audits, more so because the officers of clients themselves are running empty.