Wiley Practitioner's Guide to GAAS 2022

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
  • Engagement Acceptance and Continuance
  • Risk Assessment Standards
  • Involvement with Component Auditors
  • Materiality
  • Responding to Assessed Risks
  • Communication with Others
  • Responsibilities When Assuming Responsibility for the Work of a Component Auditor
  • 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

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.

AU-C 600 includes requirements and guidance related to:

• Internal controls,
• The consolidation process, and
• Subsequent events.

Practice pointer.

AU-C 600 applies to all audits of group financial statements, even if the same engagement team is auditing all the components of the financial statements. The AU-C 600 guidelines related to component auditors are not relevant in those circumstances, but other AU-C 600 requirements are. Group financial statements are statements that contain more than one component.

AU-C 600 articulates ...