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.
Copyright © 2023 The International Federation of Accountants (IFAC). All rights reserved.
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
Related Resources
- 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements
- Proposed International Standard on Auditing 500 (Revised), Audit Evidence, and Proposed Conforming and Consequential Amendments to Other ISAs
- Proposed Narrow Scope Amendments to ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements and ISA 260 (Revised), Communication with Those Charged With Governance
- Proposed Part 10, Audits of Group Financial Statements of the Proposed ISA for Audits of Financial Statements of Less Complex Entities
- Proposed Strategy and Work Plan for 2024‒2027