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Auditing groups of companies

Practical guidance, commentary and information on auditing groups of companies under ISA 600, including tools and support materials to help both group and component auditors.


In this section

Planning your audit of groups

Scoping and materiality on group audits

Scoping is probably the single most critical element of a group audit. If group auditors get this wrong, there will be little they can do to salvage the audit because they will either be doing too much and inefficiently, or too little and non-compliant.

Logistics on group audits

While the requirements of ISAs present their own problems in group audits, the sheer scale and complexity of some group audits and their logistics are among the biggest headaches auditors face.

Performing your audit of groups

Auditing the consolidation

Much of the time spent on a group audit is taken up dealing with the various components that make up the group. But the consolidation itself also needs to be audited. The complexity of this process varies enormously.

Reporting on your audit of groups

Specific challenges when auditing groups of companies

Coronavirus (COVID-19): Considerations for group auditors

This ICAEW Know-How article was created by the Audit and Assurance Faculty. It offers practical considerations in relation to the work of component auditors in light of coronavirus (COVID-19) to address the requirements in ISAs (UK). It may also be relevant for group auditors in other jurisdictions.

Letterbox companies

Letterbox companies are companies or groups of companies where the general and financial management and the company's operations are located in a different jurisdiction to that of the company's legal registration.

Features and articles

Group audits and recent guidance

All group audits will be affected by recent Financial Reporting Council guidance on review of component auditors’ work. Geoff Swales of PwC explains the requirements of ISA (UK) 600 and outlines the work of the group engagement team.

Audit News June 2018

Welcome to Audit News 62, your regulatory update containing the latest technical guidance and best practice advice. In this issue: Audit Registration Committee reminders: Groups audit considerations and trustee shareholdings, audit updates including this year’s Audit Monitoring report, changes to the disciplinary process and new resources including details about our latest training film, Without Question.

Questions and answers on group audits

The audit of groups can create challenges and raise difficult issues for group auditors, even when they audit every group component. Set out below is a selection of questions and answers to help steer auditors through their audits of groups of companies.

Webinars and recordings

Group audits - webinar

Group audits are rarely straightforward. This webinar covered the Audit and Assurance Faculty's latest guidance on the practicalities of group audits. Broadcast 27 January 2014.