Considerations for Group Audits: Use of Component Auditors or Referred-to Auditors

With the rise of globalization and the ability to work remotely, companies are increasingly spreading out, whether expanding sales and services into new markets and/or decentralizing operations with the setup of regional hubs and overseas shared service centers. These factors add complexity to an audit and often require the assistance of other auditors, including other offices within the same firm, other countries within the firm’s network and sometimes even other firms. Group audits present their own challenges and require special considerations around risk assessment, determining the nature, timing, and extent of audit procedures at the group as well as at the component level, communication between auditors, and supervision and review of audit work performed. This group audits CPE course will cover the requirements for using other auditors whether you perform audits under PCAOB, U.S. GAAS or ISA auditing standards.

If you are involved in group audits, then this group audits CPE-eligible (1.5 CPE) eLearning course has you covered! In this course, we’ll discuss the following auditing standards (PCAOB, U.S. GAAS, and ISA):

• AU-C Section 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors

• ISA 600 (Revised), Audits of Group Financial Statements (Including the Work of Component Auditors)

• AS 1201 (amended): Supervision of the Audit Engagement

• AS 1206: Dividing Responsibility for the Audit with Another Accounting Firm

• AS 1215 (amended): Audit Documentation

• AS 2101 (amended): Audit Planning

• AS 2301 (amended): The Auditor’s Responses to the Risks of Material Misstatement

This group audits CPE course teaches what a group audit is. This includes considerations related to:

• Planning a group audit
• Performing risk assessment procedures
• Determining the nature, timing, and extent of audit procedures for different locations and/or business units

You also learn about coordinating a group audit. This includes considerations around communication between the group auditor and component teams, as well factors impacting the lead auditor’s extent of supervision, review, and documentation.

If you’re an auditor who audits financial statements in accordance with PCAOB, AICPA, or IAASB auditing standards, this group audits CPE course is an essential component of learning how to effectively perform a group audit.

Interested in group discounts for your team or teams? Contact us to learn more.

 By the end of this course, you should be able to: 

• Identify engagements considered “group audits” in accordance with auditing standards
• Recall key terminology used in group audit scenarios such as group auditor, component auditor, and referred-to auditor
• Determine the components at which audit work will be performed
• Recall the considerations when planning and executing a group audit, including the responsibilities of the groups auditor and the group engagement partner
• Recall the additional considerations regarding equity method investments