ISA 600 – Explaining the revised standard on special considerations for group audits

The revised Standard on Special Considerations for Group Audits ISA 600, marks a fundamental change in how group audits are conducted.

The revision to the standard aims to improve the quality of group audits, a common weakness identified by regulators.

These changes include a requirement to perform more comprehensive risk assessment procedures across all components of the Group, A revised objective to audit by the risks at financial statement line item level rather than by component of the group, Centralisation of responsibility for all elements of the group audit, including the work of component auditors with the group engagement partner, the need for ongoing communication between the group and component auditors and additional documentation requirements.

While the standard is a step in the right direction for audit quality, it will also result in a significant increase in work effort for the auditor.

You can learn more about these changes here.

Our talented audit team are available to discuss how the changes impact the delivery of your audit. For further information or to speak with a member of the team, please contact us today.