Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

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.

Those performing the group audit engagement include:

• Component auditors whose work the group auditor assumes responsibility for,
• But not component auditors whose audits the group auditor makes reference to.

The group audit engagement partner:

• Must determine that those performing the group audit engagement collectively possess the appropriate competence, capabilities, and sufficient time.
• Is responsible ...