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