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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

ISA (UK) 600 and the SGN expect auditors to apply their judgement to determine the extent of working paper review, for example, determining in relation to a financially significant component what “relatively more” of the component auditor’s working papers will mean. It will need to take into account factors relating  to both the component and the  component auditor, for example:

Paragraph 50D-1 of ISA (UK) 600 requires that the GET document their review of the relevant parts of the component auditor’s documentation. This will include: