IAASB proposes revisions to ISA 600

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12 May, 2020

The International Auditing and Assurance Standards Board (IAASB) has released an exposure draft of proposed revisions to International Standard on Auditing (ISA) 600 'Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)'.

The proposed standard, International Standard on Auditing (ISA) 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) introduces an enhanced risk-based approach to planning and performing a group audit and highlights the importance of the group engagement team’s involvement in the component auditor’s work.

In addition, the proposed standard:

  • Clarifies the scope and applicability of the standard.
  • Emphasises 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.
  • 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 centralised 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.

The exposure draft is open for public comment until 2 October 2020.

A press release and the exposure draft can be found on the IAASB website here

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