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.