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Auditing group financial statements and ISA 600

International standards on auditing (ISAs) apply to the audits of groups of companies and ISA 600 specifically deals with special considerations that apply to group audits.

The need to improve the quality of group audits is highlighted in the results of external regulatory inspections, particularly in relation to oversight of the work of component auditors and the sufficiency of information from the component auditor to support the group audit opinion.

We can conclude from these regulatory findings, and from experience in practice, that group audits present real challenges for auditors, many of which relate to the need to work effectively with others.