Complexities of auditing GROUPS - ASA/ISA600
Вставка
- Опубліковано 5 сер 2024
- It is common for publicly listed companies to span over multiple countries - in many instances a Group Audit is required. In this video - I cover the requirements of the group auditor and component auditors.
This is a long video - but if you can watch the first 6 minutes, it should give you the main ideas.
My ultimate audit video study guide is available here
amandalovestoaudit.com/learni...
Find the standard here - www.auasb.gov.au/Pronouncemen...
If you have questions about ASA/ISA 600, please feel free add them in the comments below.
#StandardsExplained #AuditEvidence #GroupAudit #ISA600 #ASA600 #ILoveAudit #Auditing
Subscribe to watch more auditing videos!
/ amandalovestoaudit
Catch me on social media!
/ amandalovestoaudit
/ amandasaudit
/ amandalovestoaudit
Mic - Rode SmartLav+
Explain Everything iPad app
LumaFusion iPad app
Thank you Amanda, your videos really help me understand audit alot. It also gives my thought process direction aswell as highlighting properly🤗
You’re welcome Nomalungelo - best of luck in your audit studies! ☺️
You’re welcome Nomalungelo - best of luck in your audit studies! ☺️
Thank you! I was having a hard time reading this standard yesterday.
You’re welcome Udip!
Thanks for this - got my CR exam in a couple of days, definitely helped.
Amanda you are an amazing professor . Actually all your videos but especially this one
Many thanks Ihab 🙏
Thank you for sharing!
No worries Ram!
Thanks Amanda, this was very helpful!
You're welcome!
Thanks, this is absolutely lucid.
You’re welcome - thanks for watching ☺️
Hello! We are enganged as group auditors of a client that its signifficant components have already been audited by another auditor. Is there any guidance on how to communicate the requirments (signifficant matters for understanding the enity, identification of signifficant risks identified in the year, access to working papers, information about sigifficant issues in relation to fraud/pending litigations/subsequent review/going concern , ,) to the component auditors given that in this case we had not set the work to be performed by component auditor at planning phase?
very helpful.
Thank you for watching 🙏
thanks for the amazing video. i have a question on intercompany loan which gets nullified at consolidation. however if a subsidiary is no longer trading and hence unable to repay to its immediate parent , i agree that there wont be any impact on group level as immediate parent would write off the loan and sub would write back the liability; but is there any provision whereby the subsidiary that has made such default doesnt escape just like that ? isn't it a hole to your own pocket, especially when group is surviving on bank finance , what should be the auditor's stand on this? can we show this as impairment?
Thank you Dr. Amanda.
Regarding significant component, is there any percentage indicator from audit perspective?
Because, under ifrs 8, operating segment, percentage indicator is 10% of revenue/profit/asset.
Ps, ur video great, i do prepare for exam this dec, this help quite a lot.
Hi Aiman - IFRS 8 is a good indicator, though our standards don't indicate a % when we consider groups. A subsidiary that might be less than 10% of the base, but contribute in some greater way may still be important to consider.
Hi Dr. Amanda! Will there a video for revised ISA 600? Thanks in advance.
May I know if we need to set component materiality for associates? Since we only obtain a share of associate's profits then how do we benchmark them? Thank you
Hi - yes - according to Paragraph 21(c) - the group auditor should set the component materiality. If the component auditor was working on a subsidiary that was not wholly owned or a JV, a misstatement is a misstatement - you don't halve materiality if you only own 50% of the sub.
Hello Amanda, I have a question :) Do the components pertain to the subsidiaries of a parent company?
Hi - yes - usually subsidiaries are counted as components - often when it another country, you’ll have a component auditor (within the same country as the parent, usually subsidiaries are audited by the mail auditor)
Hi Amanda, i have a question. I was auditing a Company which is a holding Company and has investment in an associate. The Holding Company is preparing standalone financial statements which has this associate accounted for using equity method.
Would this mean that we being the auditors would need to send audit instructions to the Company who was auditing this investment in an associate or would their audited financial statements be enough as audit evidence? Please note that this associate accounts for more than 50% of the net profit of the Holding Company. Would this fall under isa 600? Thanks
Thanks for being part of our learning community Cesar 😊
Thank you.
You’re welcome Anga ☺️
maim can you explain the standards with the help of real life example , and maim plz
can you draw a simple mind map of standards which help students in revision phase.
Hi amanda, may i know what is the percentage of sharholding in subsidiaries that requires the parent co to prepare a consolidated FS? Thank you
It would all come down to the concept of control, regardless of percentage
What can be a component ? Is it only material subsidiaries or even a joint venture , Associate also falls under component category under ISA 600 ?
Hi New Life - do you mean who can be a component auditor? Or what parts of the parent are considered components?
Mam, My CA Firm in Bangladesh has a client which is a Group company. So when we perform statutory audit in this client should we issue single audit engagement letter and consolidated audit engagement letter and the group company issue single management representation letter and consolidated management representation letter as per IAS?
Are you auditing the group or the component? It generally should be one for the entire group and the main audit firm.
Thank You for your reply Mam. For your consideration I like to say that we are auditing a group company.
It is reallu hard to absorb this standard especially when you are taking board exams in about 90days.
Good luck with your revision Bahemis - and don't forget that my free video study guide is available on my website :) amandalovestoaudit.com/learning-resources/audit-study-guide/
can i hav another video for auditing group in application and other explanatory material
Thanks for watching! Unfortunately I don’t make videos for the application and explanatory materials for the auditing standards ☺️
@@amandalovestoaudit Ouh sokay thank you so much
Fg