Audits of Group Financial Statements

Course Description:

AU-C Section 600, Special Considerations – Audits of Group Financial Statements(Including the Work of Component Auditors) was effective, along with other Clarified Auditing Standards, for periods ending after December 15, 2012. This standard applies to audit engagements for group financial statements (previously addressed as consolidated financial statements) in particular when part of the work is performed by auditors other than the principal auditor. It also applies when one engagement team performs the group and component audits, except for the sections applicable to component auditors.

In this standard, the previous term principal auditor is referred to as the group engagement partner, group engagement team or auditor of the group financial statements. The group engagement team’s degree of involvement with and supervision of the component auditor more clearly defined than in previous standards.  In essence, the group auditor is responsible for directing, supervising, performing and reporting on the group audit. The group engagement team may choose to take responsibility for component auditor’s work or refer to their reports in the group audit report.

These materials present an outline and summary of the typical procedures and activities for an audit engagement with the requirements of AU-C 600, group audit procedures. Interfaced into applicable sections of the outline.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Understand the requirements of AU-C Section 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors)
• Be able to design group audit strategies and plans
• Determine required procedures when a group auditor takes responsibility for component auditors’ work
• To learn responsibilities of group audit partners for group audit procedures and documentation, including communications to and from component auditors