Wiley Practitioner's Guide to GAAS 2013: Covering all SASs, SSAEs, SSARSs, and Interpretations

AU-C 600: Special Considerations—Audits of group financial statements (including the work of component auditors)

AU-C EFFECTIVE DATE AND APPLICABILITY

Original Pronouncements	Statement on Auditing Standards (SAS) 122
Effective Date	This standard is currently effective.
Applicability	All audits in accordance with generally accepted auditing standards and other services covered by SASs.
NOTE: All sections apply whether the financial statements are presented in conformity with generally accepted accounting principles (GAAP) or other comprehensive basis of accounting (OCBOA) unless otherwise noted.

AU-C EFFECTIVE DATE AND SUMMARY OF CHANGES

SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of group financial statements with periods ending on or after December 15, 2012.

The effort to converge US generally accepted accounting standards (GAAS) with international standards on auditing resulted in the introduction of the “Group Audit” standard. This standard is based on ISA 600, The Work of Related Auditors and Other Auditors in the Audit of Group Financial Statements. AU 543 contains only limited guidance in this area.

AU-C 600 introduces several new concepts (see also the definitions section below):

• Component—performs work on the financial auditor—no longer referred to as “other auditor”
• Group
• Group engagement—this term replaces “principal auditor”
• Group engagement team
• Group financial statements—encompasses not only consolidated ...