Report tabled in National Assembly on 16 June 2021
by Minister of Finance and Economic Development
by Minister of Finance and Economic Development
The 2020 audit period is a unique year because of the unprecedented COVID-19 pandemic. The COVID-19 is not only a global pandemic and public health crisis but has also severely affected national economies and financial markets. Significant reductions in income, a rise in unemployment, and disruptions in the transportation, service delivery and manufacturing industries are among the consequences of the disease, of which Zimbabwe was not spared.
The consequences of the Covid-19 pandemic on financial reporting and audit engagements are complex and have resulted in challenges for management, those charged with governance and auditors. There is an unprecedented level of uncertainty about the economy, future earnings and many other inputs that represent fundamental elements of financial reporting. Both preparers and auditors were affected by restrictions on travel and requirements to stay at home, which presented practical challenges to the audit engagements and the ability to meet the June 30 reporting deadline. Many public entities are faced with demand and operational uncertainties, as such completion of procedures necessary to issue historical financial statements may have been a low priority as observed by the number of audits performed to completion during this period.
The effects are likely to be a big dent in the spectra of accountability and transparency as COVID-19 is likely to regress the progress that had been made over the years in bringing most public entities up to date in their financial reporting. At the time of producing this report, in relation to the 2019 financial year, forty-three (43) audits were in progress and thirty-eight (38) local authorities had not yet submitted financial statements for audit.
