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Chapter 10 4

 accounting for a foreign subsidiary

 identify and explain the audit risks, and necessary audit procedures relevant to
the consolidation process.

 identify and describe the matters to be considered and the procedures to be
performed at the planning stage, when a group auditor considers the use of the
work of component auditors

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

 justify the situations where a joint audit would be appropriate

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

and answer questions relating to these areas.

The underpinning detail for this chapter in your Integrated Workbook can
be found in Chapter 10 of your Study Text

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