Group Audits

Current Status Next Steps

Exposure draft being developed.

First half of 2019 – Exposure draft to be approved.

OBJECTIVE AND SCOPE OF THIS PROJECT

Many audits today are audits of group financial statements – also known as group audits – these type of engagements can be very challenging.

(Read more)

This is a result of complex group structures, cultural and language barriers, differences in laws and regulation, involvement of component auditors and many other factors.

The IAASB is proposing revisions to ISA 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) to:

  • strengthen the auditor’s approach to planning and performance of a group audit; and
  • clarify the interaction of ISA 600 to the other ISAs.

(Hide)


PROJECT NEWS & DECISION SUMMARIES

IAASB Releases ISA 600 Project Update
October 25, 2017. The IAASB has issued an update for its project to revise ISA 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). This publication highlights the issues under consideration in the revision of this standard and other current projects.

AASB Decision Summary – September 14-15, 2017
The Board provided input to the CPA Canada nominee on the IAASB on issues related to the IAASB’s project to revise ISA 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). The Board supported the IAASB Group Audits Task Force’s (GATF) proposed project update, with a recommendation to add a high-level project timeline. The Board encourages the GATF to consider issuing interim guidance on key issues while the standard is being revised. If resources allow, the GATF should also continue to address group audit specific issues as they interact with other working groups. This will help to maintain alignment of the project timelines.

AASB Decision Summary – June 12-13, 2017
The Board provided input to the CPA Canada nominee on the IAASB on issues related to the IAASB’s project to revise ISA 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). Issues discussed included the scope of ISA 600 and group audit issues that are dependent upon other IAASB projects currently in progress. The Board acknowledged the importance of the IAASB’s Group Audits Task Force interacting with other working groups as they revise related standards.

AASB Decision Summary – November 28-29, 2016
The AASB provided input to the CPA Canada nominee on the IAASB on issues related to the IAASB’s project proposal addressing quality control and group audits. The AASB expressed concerns with the lack of detail in the project proposal related to group audits. However, the AASB supports these projects and intends to set up two advisory groups to assist staff and provide input on Canadian issues.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.