We lodged a joint submission with ACCA on 1 October to the International Auditing and Assurance Standards Board (IAASB) regarding its exposure draft proposing revisions to ISA 600 Special Considerations – Audits of a Group Financial Report.
The exposure draft is the result of the IAASB’s work on the topic, following on from its 2015 Invitation to Comment (ITC) Enhancing Audit Quality: A Focus on Professional Skepticism, Quality Control and Group Audits.
Our submission is broadly supportive of the proposed revisions but we have concerns over the need for there to be appropriate guidance to enable practioners to successfully implement the risk-assessment process which will be key to group audit engagements and that the standard as drafted, may have an unintended consequence of causing group auditors to favor using only in-network firms for component audits which may adversely impact audit quality.
IAASB’s ISA 600 project page
Access the IAASB’s project page on group audit engagements containing the public consultations and history of the project that CA ANZ commented on