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he Covid-19 pandemic has led to significant changes across all industries. Financial reporting and auditing, however, may not be at the forefront of many accountants' and CPAs' minds. They must be aware of where the Covid-19 may have an impact. Because of the disruptions caused by Coronavirus, the SEC and the PCAOB has issued guidelines for public companies and auditors to manage their measures against this pandemic. 
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<strong>The Impact Areas</strong> 
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Most of the business entities are not resistant to the impacts of the coronavirus outbreak and thus getting affected, either directly or indirectly. Possible adverse impacts of pandemic include: 
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<li>● Global supply chains' disruptions</li>
<li>● Staff shortages </li>
<li>● Decreased productivity</li>
<li>● Reduction or closure of manufacturing activities Problems in raising financing </li>
<li>● Closure of retail stores</li>
<li>● Volatile and declining financial markets Going concerned </li>
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As per accounting standards, the financial statements must be made on a going concern basis unless the management either wants to liquidate the business or stops trading or has no accurate alternative but to do so. The going concern valuation considers events both before and after the reporting date. 
Entities having 31 December 2019 and following reporting period ends, must know if the coronavirus- related incidents (like those mentioned above) that occurred after the balance date, led to a momentous deterioration in their financial position or operating results, or resulted in material uncertainties. 
Where material complexities exist that cast substantial doubt on the going concern statement, suitable disclosure in the financial statements are required to be included about the material uncertainties. 
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