5 April 2022

2022 Working Programme Expanded by Aspects relating to the Ukraine War

In light of recent events, the Auditors’ Supervisory Office (Abschlussprüferaufsichtsstelle - APAS) has expanded its 2022 Working Programme (which WPK reported on at “Neu auf” of 13 January 2022 (in German)) with a chapter “Impacts of the Ukraine War”. The working programme is published on the APAS website (in German).

The APAS states that Russia's attack on Ukraine on 24 February 2022 and the measures taken by the Member States of the European Union in agreement with the NATO allies as a response will have a considerable effect on the development of the world economy and thus, in particular, on the economic development of companies of public interest.

Technical Advice from the Institute of Public Auditors in Germany (IDW)

It continues that the IDW had already published technical advice on the impacts of the Ukraine war on financial reporting and audits on 8 March 2022 and, in the opinion of the APAS, correctly expressed itself, in particular with respect to the reporting date principle and the requirements of management reporting.

Practices’ Risk Assessments

In the inspections, the APAS will deal with the practices’ risk assessments on the effects of the Ukraine crisis and the measures derived from the same for the quality assurance systems. After identification of clients with a link to Ukraine and Russia, this will concern the furnishing of relevant technical information, requirements to obtain specialist advice/consultations or other measures for job-related quality assurance with respect to the identified risks at the practice and client level. The APAS will deal with individual audits that are exposed to particular risks from the Ukraine war in a similar way to the procedure with the coronavirus rules, successively depending on the balance sheet dates of the companies of public interest.