Group Audits – ISA 600
What the Project Aims to Achieve
The IAASB is currently working on a project to revise ISA 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors). In revising this standard, the IAASB aims to:
- Clarify the scope of the standard, including explaining whether ISA 600 (Revised) applies to shared service centers, non-controlled entities and entities with branches or division;
- Clarify the interaction of ISA 600 (Revised) with other ISAs, including ISA 220 (Revised), ISA 315 (Revised 2019) and ISA 330;
- Clarify how to address restrictions on access to people and information in a group audit, including restrictions on access to component management, those charged with governance of the component, component auditors, or information at the components;
- Clarify how the concepts of materiality and aggregation risk apply in a group audit;
- Strengthen the auditor’s approach to planning and performance of a group audit by closer aligning the standard to the principles in ISA 315 (Revised 2019);
- Enhance the documentation requirements by clarifying what the group auditor may need to document in different situations;
- Emphasize the importance of professional skepticism in a group audit; and
- Reinforcing the need for robust communication and interactions during the audit.
The IAASB is mindful that the standard needs to be scalable and adaptable to a variety of circumstances. The IAASB intends to incorporate a principles-based approach in the standard, with application material to demonstrate how those principles may apply in a variety of circumstances.
Please note that forecasted milestones are targets and are subject to change.
Current Status of the Project
At the December 2020, March 2021, June 2021 and September 2021 meetings, the Board discussed respondents’ comments on the Exposure Draft of proposed ISA 600 (Revised) (ED-600), the ISA 600 Task Force’s views and recommendations on the way forward and drafting of proposed ISA 600 (Revised)
The ISA 600 Task Force will update the drafting of proposed ISA 600 (Revised), and plans to present, for final approval, an enhanced version of the standard in December 2021.
Task Force Information
IAASB Staff Contact
Task Force Members
Staff Audit Practice Alert - Responsibilities of the Engagement Partner in Circumstances when the Engagement Partner Is Not Located Where the Majority of the Audit Work is Performed Invitation to Comment, Enhancing Audit Quality in the Public Interest
ISA 600 Project Update Proposed International Standard on Auditing (ISA) 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) (ED-600) Comment letters on ED-600