Group dynamics - practical advice
Group audits can be challenging for group and component auditors. Alex Peal and Robert Holland offer some practical advice on how to avoid or overcome some of the more common problems.
For a number of audit firms, group audits are not something that they undertake on a daily basis. This means that at times key requirements of the International Standards on Auditing (ISAs) are not always at the front of their minds and when problems arise the practitioner can sometimes be uncertain as to how to deal with the issues.
This uncertainty is borne out by reports from regulators. For example, in Audit Quality Inspections 2012/13, the Financial Reporting Council (FRC) highlight a number of common problems with group audits, including documentation, involvement in the direction of the audit, risk assessment and the review of component auditor work.
ISA (UK and Ireland) 600 Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) sets out the requirements for the audit of group financial statements. However, other rules also exist...
This is an extract from an article in the June 2014 edition of Audit & Beyond, the magazine of the Audit and Assurance Faculty.
Find out more
Not yet a faculty member?
Not yet a member? To get access to all future publications, events, webinars and services, join the Audit and Assurance Faculty today.