Group audits

- An in-depth review of proposed changes to ISA 600 on group audits. The delivery of high-quality audits involving firms in multiple jurisdictions is one of the key reasons why audited entities will chose to use a network.

- The proposals focus more attention on the responsibility of the group auditor to direct and supervise the work of component auditors. They also consider how individually immaterial components are assessed and appropriate audit evidence obtained. Finally, the interaction between local statutory audits and the work undertaken for the audit of the consolidated financial statements will also be explored to ensure an effective use of audit work.

- This review of ISA 600 will build on the work already undertaken on the quality management standards. Work is at an early stage and further documents will be issued in 2020