The Impact of the COVID-19 Pandemic on the Opinion of the Auditor According to International Auditing Standards
Kut University College Journal for Humanitarian Science,
2022, Volume 3, Issue 1, Pages 88-97
AbstractThe COVID-19 pandemic. has led to an economic downturn worldwide, low financial liquidity and a defect in financial stability, which has affected business enterprises and various sectors, and the banking sector is one of the sectors affected by this pandemic, and the research problem lies in asking what is the impact of pandemic. (COVID-19) in the indicators of banking performance and its impact in the auditor's opinion and what is the impact of the (COVID-19) pandemic and its impact on imposing continuity. Because of the importance of this problem, the research was based on a main hypothesis that the outbreak of the (COVID-19)a pandemic affects banking performance, and is reflected in the opinion of the auditor according to international auditing standards. The research aims to present the impact of the (COVID-19) pandemic on the performance in the banking sector, and its implications for imposing continuity. In light of the theoretical and practical study of the research, the researcher reached a set of conclusions, among which the (COVID-19) pandemic is likely to affect the ability of a large number of borrowers to fulfill their obligations in relation to loan agreements and the likelihood of default increases, which affects the evaluation or estimation of expected credit losses. And reducing the profits of banks, which leads to damage to the integrity of banks. Based on the conclusions reached, a set of recommendations were presented, among which banks should be encouraged to exercise the flexibility provided by the regulatory rules, and the terms of loans must be renegotiated and the guarantees and legal procedures imposed on customers when granting bank loans are to be granted to the largest possible number.
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