Group audits performed in accordance with International Standard on Auditing 600 Special considerations – audits of group financial statements (including the work of component auditors) presents challenges to both group and component auditors.
The need to improve the quality of group audits is highlighted by the results of external regulatory inspections. In their 2013 Summary report of inspection findings, the International Forum of Independent Audit Regulators (IFIAR) identified group audits as one of their inspection themes, indicating that this is an issue in a number of countries. This section includes tools and support materials which draws on the experience of auditors who have acted as both group and component auditors.
Materiality in the audit of financial statements
Practical guidance for auditors applying the materiality requirements in International Standards on Auditing (ISAs) on audits, including group materiality.
Auditing groups: a practical guide
Auditing groups: a practical guide, together with Auditing groups: a practical guide, Supplementary Materials, supports auditors through the challenging elements of group audits around planning, execution and completion and reporting, together with other areas to consider.
Auditing in a group context
Group audits have been the focus of much international commentary in recent times and this has led to new EU requirements and the IAASB’s revised ISA 600. Attention has also been paid to these matters in the UK, by the Financial Reporting Council, for example as part of its Choice in the UK Audit Market project, and in the recent reports from the Professional Oversight Board and the Audit Inspection Unit based on the findings from audit inspections. The new guide describes special considerations at each stage of the group audit cycle and provides suggestions to auditors. Our aim is to provide both group auditors and component auditors with practical help that will allow them to evolve their practices in the various stages of the cycle. The guide also covers the new European requirements and looks ahead so that firms can prepare for the UK adoption of the IAASB’s ISA 600.
Articles written by practitioners and ICAEW staff in the area of Group audits.
This section contains webinars covering practical assistance for firms and practitioners in the application of ISA 600.
Guidance and support from the IAASB in the area of group audits.
Frequently-asked questions around ISA 600.