Proposed International Standard on Auditing 600 (Revised): Special Considerations -- Audits of Group Financial Statements (Including the Work of Component Auditors)

IAASB
Apr 27, 2020 | Exposure Drafts and Consultation Papers
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Comments due by: Oct 02, 2020

To ensure that International Standards on Auditing (ISAs) continue to provide a foundation for high-quality global audits, the IAASB Exposure Draft, ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors), proposes more robust requirements and enhanced guidance that:

Clarifies the scope and applicability of the standard.
Emphasizes the importance of exercising professional skepticism throughout the group audit.
Clarifies and reinforces that all ISAs need to be applied in a group audit through establishing stronger linkages to the other ISAs, in particular to proposed ISA 220 (Revised), ISA 315 (Revised 2019) and ISA 330.
Focus the group engagement team’s attention on identifying and assessing the risks of material misstatement of the group financial statements and emphasizes the importance of designing and performing procedures that are appropriate to respond to those assessed risks. When component auditors are involved, the proposed standard highlights the importance of the group engagement team’s involvement in the component auditor’s work.
Reinforces the need for robust communication and interactions between the group engagement team, group engagement partner and component auditors.
Includes new guidance on testing common controls and controls related to centralized activities.
Includes enhanced guidance on how to address restrictions on access to people and information.
Enhances special considerations in other areas of a group audit, including materiality and documentation.

Comments are requested by October 2, 2020.

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Submitted Comment Letters

1. Wirtschaftsprüferkammer (Germany)
July 2, 2020

2. National Association of State Boards of Accountancy (United States)
August 12, 2020

3. MNP LLP (Canada)
August 31, 2020

4. Canadian Public Accountability Board (Canada)
September 10, 2020

5. International Organization of Securities Commisions (Spain)
September 13, 2020

6. Provincial Auditor Saskatchewan (Canada)
September 17, 2020

7. Lynford Graham (United States)
September 21, 2020

8. California Society of CPAs (United States)
September 23, 2020

9. International Association of Insurance Supervisors (Switzerland)
September 24, 2020

10. Auditing Standards Board of the American Institute of Certified Public Accountants (United States)
September 26, 2020

11. European Federation of Accountants and Auditors for SMEs
September 28, 2020

12. MAZARS
September 29, 2020

13. Instituto Nacional de Contadores Públicos de Colombia (Colombia)
September 29, 2020

14. International Forum of Independent Audit Regulators
September 29, 2020

15. Accounting and Finance Association of Australia and New Zealand
September 29, 2020

16. Hong Kong Institute of Certified Public Accountants (Hong Kong (Special Administrative Region of China))
September 29, 2020

17. CohnReznick LLP
September 29, 2020

18. Auditing and Assurance Standards Board (AUASB) (Australia)
September 30, 2020

19. Limpberg Instituut (Netherlands)
September 30, 2020

20. NEXIA INTERNATIONAL
September 30, 2020

21. Instituto Mexicano de Contadores Publicos, A.C. (Mexico)
September 30, 2020

22. The Japan Institute of Certified Public Accountants (Japan)
September 30, 2020

23. CNCC CSOEC (France)
October 1, 2020

24. Financial Reporting Council (United Kingdom)
October 1, 2020

25. KPMG IFRG Limited
October 1, 2020

26. Illinois CPA Society (United States)
October 1, 2020

27. KICPA
October 1, 2020

28. Self-regulating organization of auditors (SRO), Association "Sodruzhestvo"
October 1, 2020

29. New York State Society of CPAs (NYSSCPA) (United States)
October 1, 2020

30. Audit Oversight Board, Securities Commission Malaysia (Malaysia)
October 1, 2020

31. Institute of Singapore Chartered Accountants (ISCA) (Singapore)
October 1, 2020

32. The Malaysian Institute of Certified Public Accountants (MICPA) (Malaysia)
October 1, 2020

33. The Institue of Internal Auditors
October 1, 2020

34. Chartered Accountants Australia and New Zealand (CA ANZ) and the Association of Chartered Certified Accountants (ACCA)
October 1, 2020

35. IRBA
October 1, 2020

36. Crowe Global
October 1, 2020

37. Canadian Securities Administrators Chief Accountants Committee
October 1, 2020

38. RSM International Limited
October 1, 2020

39. Grant Thornton International Limited
October 2, 2020

40. CPA Australia
October 2, 2020

41. Hunter College Graduate Program (United States)
October 2, 2020

42. Malaysian Institute of Accountants (MIA) (Malaysia)
October 2, 2020

43. Auditor general of the Ville de Montreal (Canada)
October 2, 2020

44. Austrian Chamber of Tax Advisors and Public Accountants (Austria)
October 2, 2020

45. Office of the Auditor General of Alberta (Canada)
October 2, 2020

46. Vera Massarygina (Russian Federation)
October 2, 2020

47. The Institute of Chartered Accountants of Scotland
October 2, 2020

48. The Professional Accounting Organizations of the Europe and Central Asia Region (ECA PAOs Group-the provisional title of the group, not yet formalized) (Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Moldova, Republic of, Russian Federation, Uzbekistan)
October 2, 2020

49. Pitt Consulting (Belgium)
October 2, 2020

50. U.S. Government Accountability Office (United States)
October 2, 2020

51. IAASA
October 2, 2020

52. Institut der Wirtschaftspruefer in Deutschland e.V. (IDW) (Germany)
October 2, 2020

53. Committee of European Auditing Oversight Bodies
October 2, 2020

54. Moore Global
October 2, 2020

55. Mazars USA LLP (United States)
October 2, 2020

56. Royal NBA, the Netherlands Institute of Chartered Accountants (Netherlands)
October 2, 2020

57. Nordic Federation of Public Accountants
October 2, 2020

58. Ernst & Young Global Limited
October 2, 2020

59. BDO (United Kingdom)
October 2, 2020

60. South African Institute of Chartered Accountants
October 2, 2020

61. The Auditor-General of South Africa (South Africa)
October 2, 2020

62. FAR (Sweden)
October 2, 2020

63. PKF International Limited
October 2, 2020

64. Center for Audit Quality (United States)
October 2, 2020

65. IFAC SMP Committee
October 2, 2020

66. Corporate Reporting Users' Forum(CRUF)
October 2, 2020

67. Baker Tilly International
October 2, 2020

68. ICAEW (United Kingdom)
October 2, 2020

69. AASB Canada (Canada)
October 2, 2020

70. Deloitte Touche Tohmatsu Limited
October 2, 2020

71. Botswana Institute of Chartered Accountants (Botswana)
October 3, 2020

72. ETY
October 3, 2020

73. Office of the Auditor General of Canada (Canada)
October 3, 2020

74. The New Zealand Auditing and Assurance Standards Board (NZAuASB) (New Zealand)
October 4, 2020

75. Office of the Auditor General of Ontario (Canada)
October 5, 2020

76. Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India (India)
October 5, 2020

77. Basel Committee on Banking Supervision (Switzerland)
October 6, 2020

78. Institute of Public Accountants
October 7, 2020

79. IBRACON (Brazil)
October 7, 2020

80. Accountancy Europe
October 7, 2020

81. PwC
October 8, 2020

82. CPA Ireland (Ireland)
October 8, 2020

83. The Federation of Accounting Professionals of Thailand (Thailand)
December 1, 2020

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