Wiley Practitioner's Guide to GAAS 2020

27AU-C 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)

Scope

Introduction

Definitions of Terms

Objectives of AU-C Section 600

Overview

Requirements

Identifying Components

Responsibilities

Engagement Acceptance and Continuance

Risk Assessment Standards

Involvement with Component Auditors

Materiality

Communication with Others

Documentation

Interpretations

Interpretation No. 1, “Auditor of Participating Employer in a Governmental Pension Plan,” of AU-C Section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)

AU-C 600 Illustrations

Appendix A. Understanding the Group, Its Components, and Their Environments—Examples of Matters about Which the Group Engagement Team Obtains an Understanding

Appendix B. Examples of Conditions or Events That May Indicate Risks of Material Misstatement of the Group Financial Statements

Appendix C. Required and Additional Matters Included in the Group Engagement Team’s Letter of Instruction

Exhibit A. Illustrations of Auditor’s Reports on Group Financial Statements

Exhibit B. Illustrative Component Auditor’s Confirmation Letter

Exhibit C. Sources of Information

SCOPE

AU-C 600 applies whenever the audited financial statements include more than one component, including:

• Combined financial statements of components under common control, or
• Group financial statements

Practice pointer. AU-C 600 applies to all audits of group financial statements, ...