The impact of the Corona virus on the external audit of companies in the Kingdom of Saudi Arabia

Introduction:
The modern business environment has witnessed many dynamic developments, crises and disasters that have created more challenges for business enterprises to the extent that the continuity or survival of these companies is linked to their ability to face these challenges.

The effects of crises and disasters such as the current crisis caused by the spread of the Corona virus extend to many activities of economic life and have an impact on the preparation and audit of financial statements in accordance with the approved auditing standards. This crisis is a source of uncertainty about the future of companies and it is difficult to apply it in such circumstances because international auditing standards are based on principles

The Corona crisis affected all economic sectors around the world, but with different degrees of impact from one sector to another, whether negatively, such as the tourism and entertainment sectors, airlines, banking and insurance, or positively, such as health care and the pharmaceutical sector, each of which found in this crisis a golden opportunity to enhance its investments, especially in the areas of research
and development

The profession of external auditing in the Kingdom of Saudi Arabia has also been affected, as the Saudi external auditor faces many challenges when collecting appropriate evidence for auditing due to precautionary measures and restrictions on the movement of auditors and the need for social distancing between individuals, and considering attending the actual inventory count is not practically possible due to the danger it poses to the safety of reviewers. Auditors may encounter situations where inventory sites are closed or open with a very limited number of employees. It may be difficult to obtain sufficient appropriate audit evidence regarding the existence and condition of inventory at the balance sheet date. In addition, the delay in endorsements from banks, customers or suppliers and the difficulty of moving to review the tasks carried out by the internal auditors in subsidiaries in other countries. All these things and many more impede external audit from verifying the
sources of evidence

Research Problem:

the COVID-19 pandemic is causing a direct global destructive economic impact that is present in every area of the globe. All parties must now face what has already been obvious to many that such phenomenon are imminently possible and indeed likely. (Goodell, 2020)
The Corona crisis at the beginning of 2020 caused a health and economic crisis all over the world, and it had severe economic and financial consequences
The importance of the role of external audit has increased as a result of the covid-19 and the increase in doubts, uncertainty and ambiguity regarding the ability of the affected companies to continue, and this requires the external auditor to expand audit activities. The auditor may be compelled to perform alternative or additional audit procedures under conditions of uncertainty

Based on the foregoing, the research problem can be formulated in the following question:

What is the impact of COVID-19 on the external auditor in the practice of work ?

The following sub-questions emerge from this question:

• Is there impact of COVID-19 on going concern assessment?
• Does remote work have an impact on the work of the external audit ?
• Can the auditor obtain sufficient and appropriate audit evidence during the Covid crisis ?
• Does the COVID-19 impact on the report of external auditors ?