11 January 2021

Major listed companies may have to delay their results due to auditors facing a backlog of work amid the latest Covid-19 lockdowns. Staff are under pressure due to school closures during peak auditing season, as almost half the companies on the stock market are drawing up year-end results.

The big four accounting firms have warned that many finance professionals are reducing their working hours due to school closures. The Sunday Times reports city watchdogs are already in talks over the “mounting concerns”.

Several regulators are understood to be planning a joint statement within days, urging finance executives and auditors to “communicate swiftly if they have any difficulties publishing on time”.

There are also challenges in determining whether companies are fit for going concern certification, due to uncertainty over how long the latest lockdown will last.

During the first lockdown, the time given for companies to report was extended from four months to six. This guidance still stands but further clarification is expected this week.

https://bit.ly/3q7g2IM