Page 110 - AAA Integrated Workbook STUDENT S18-J19

Chapter 8 4

– equity accounting for associates and joint ventures

– changes in group structure including acquisitions and disposals, and

– accounting for a foreign subsidiary

 in respect of the consolidation process, identify and explain the relevant audit
risks and audit procedures necessary to obtain sufficient appropriate evidence

 consider how the group auditor should evaluate the audit work performed by a
component auditor

 explain the responsibilities of the component auditor before accepting
appointment, and the procedures to be performed in a group situation

 explain the implications for the auditor’s report on the group financial statements
of an entity where the opinion on a component is modified in a given situation

 justify the situations where a joint audit would be appropriate

 discuss how transnational audits may differ from other audits of historical
financial information (e.g. in terms of applicable financial reporting and auditing
standards, listing requirements and corporate governance requirements)

and answer questions relating to these areas.

The underpinning detail for this chapter in your Integrated Workbook can
be found in Chapter 8 of your Study Text

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