ISA 600 - SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS (INCLUDING THE WORK OF COMPONENT AUDITORS)

 This ISA deals with special considerations that apply to group audits, in particular those that involve component auditors.

The requirements include client acceptance and continuance, and establishing the overall group audit strategy and group audit plan. They also include understanding the component auditor; understanding the group, its components and their environments; determining materiality; and responding to assessed risks. Requirements relating to consolidation include evaluating the client’s consolidation process and designing and performing further audit procedures on that process. Other requirements include considering subsequent events, evaluating the sufficiency and appropriateness of audit evidence obtained, and outlining the information to be included in audit documentation.

 

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