Canadian Auditing Standards

Group Audits

Summary

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

Staff Contact(s)

Birender Gill, CPA, CA

Principal, Auditing and Assurance Standards Board

Project Status

  • Information gathering

    Completed prior to 2016

  • Approving project

    The Exposure Draft is currently being developed

    The IAASB approved project proposal in December 2016

  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement

Meeting & event summaries


June 10, 2019

AASB Decision Summary — June 10-11, 2019

The AASB provided input to the IAASB members from Canada about the IAASB’s project to revise ISA 600, Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors). The Board discussed:

  • public interest issues;
  • use of the risk-based approach for planning and performing an audit of group financial statements;
  • proposed definitions of component, group financial statements and consolidation;
  • proposed structure and scope of revised ISA 600; and
  • proposed changes to the engagement acceptance and continuance and planning considerations.

The Board will continue to discuss this project at future meetings.

March 4, 2019

AASB Decision Summary — March 4-5, 2019

The AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on the IAASB’s project to revise International Standard on Auditing (ISA) 600, Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors). The Board discussed:

  • the use of a top-down, risk-based approach to scoping group audits;
  • definitions of component, significant component and group engagement team; and
  • the need for further clarification of component materiality considerations.

The Board will continue to discuss this project at future meetings.

September 15, 2017

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.

June 13, 2017

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.

November 29, 2016

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.

News


October 25, 2017

News

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.

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.