Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

AU-C 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)

AU-C Original Pronouncements

Sources

Statements on Auditing Standards (SASs) 122, 127, 128, and 130.

Introduction

SAS No. 127 clarifies that the group engagement team is required to determine component materiality for those components on which the group engagement team will assume responsibility for the work of a component auditor who performs an audit or a review.

The AICPA has issued Technical Questions and Answers on Audits of Group Financial Statements and Work of Others. The Q and As address these areas of practice issues:

• Applicability of AU-C 600
• Making reference to any or all component auditors
• Deciding to act as auditor of group financial statements
• Factors to consider regarding component auditors
• Governmental financial statements that include a GAAP-basis component
• Component audit performed in accordance with Government Auditing Standards
• Component audit performed by other engagement teams of the same firm
• Terms of the group audit engagement
• Criteria for identifying components
• Criteria for identifying significant components
• No significant components are identified
• Restricted access to component auditor documentation
• Responsibilities with respect to fraud in a group audit
• Inclusion of component auditor in engagement team discussions
• Determining component materiality
• Understanding of component auditor whose work will not be used
• Involvement in the ...