In short
A group audit is an audit of financial statements that combine the financial information of more than one entity or business unit (components), such as consolidated statements.
Key takeaways
- The group engagement partner is responsible for the group audit opinion.
- Work on components may be done by the group team or by component auditors.
- The group auditor must be involved enough in component auditors' work to decide whether it is adequate.
Where it's tested
AUD: Group Audits & Using Others' Work — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A group auditor decides to make reference to a component auditor who audited a significant subsidiary. What is the effect on the auditor's report?