Group Audits

Overview:

When performing group audits, irrespective of whether the same firm is auditing the whole group, group auditors tend to discuss planning considerations and group audit arrangements, but not to document them at the start of the audit. The focus also seems to be on consolidation issues, rather than group risk. This is a dangerous approach which could result in important aspects being missed when consolidating the various components or subsidiaries. It also increases the risk of material misstatement at group level going undetected and the audit report on the consolidated financial statements being inappropriate under the circumstances. Furthermore, auditors often neglect to document audit procedures performed on detailed consolidation processes, over and above the accounting workings.

This course provides a practical understanding of key requirements relating to group audits, and how to approach these engagements appropriately and in an efficient manner. Participants will learn how to apply these requirements and principles in practice through discussion of practical examples.

Content and outline:

To explain the following concepts and demonstrate their practical application:

• ISA 600 requirements for audits of group financial statements, including

o Quality considerations
o Risk considerations
o Procedures

• Joint auditors
• Group instructions
• Consolidation workings
• Common working paper deficiencies

Certification:

Upon completion of the course, participants will receive a verifiable attendance certificate.