Page 112 - AAA Integrated Workbook STUDENT S18-J19

Chapter 8 4

Group audit considerations

The principles of auditing a group are the same as the audit of a single company and
all of the auditing standards are still relevant to a group audit. There are, however,
some specific considerations relevant to the audit of a group.

 Group financial statements require numerous and potentially complicated
consolidation adjustments.

 Specific accounting standards relating to group financial statements must be
complied with.

 The components of the group (i.e. the subsidiaries) may be audited by firms
other than the group auditor.

 The organisation and planning of a group audit may be significantly more
complex than for a single company.

 The group auditor is responsible for the audit of the parent company financial
statements and the consolidated financial statements.

 The component auditor is responsible for the audit of the subsidiary financial
statements.

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