Auditing PPP loans

Audits conducted in accordance with generally accepted auditing standards (GAAS) are performed under the concept of a risk-based approach. In an effective audit, firms perform a risk assessment for both inherent risk and control risk and then design audit procedures responsive to those risks. Auditing Paycheck Protection Program (PPP) funds are no different. However, there are some unique factors that should be considered. Firms should review their quality control policies to determine if funding related to COVID 19 relief programs