Understanding Group Audits: A Practical Guide to AU-C Section 600, Updated by SAS No. 149

Group audits can arise in more situations than a traditional parent-subsidiary consolidation, and performing them well requires the auditor to connect group-level risks to the locations, processes, and people involved in the audit.

In this webcast, participants will learn to:

• Determine whether financial statements are group financial statements
• Identify useful components
• Plan the audit around assessed risks
• Determine where and by whom procedures should be performed
• Establish component performance materiality
• Evaluate the consolidation process
• Distinguish between the requirements for component auditors and referred-to auditors

The webcast follows the sequence of an actual group audit, from acceptance and planning through risk assessment, response, completion, communications, documentation, and reporting.

It uses a case study example and practical scenarios to reinforce application of the group audit requirements in AU-C section 600, as updated by SAS No. 149.

This webcast is part of the New Standards Learning Series, designed to provide timely, practical learning on new and emerging professional standards.

Related learning coming soon: New Confirmation Standard (SAS 15) New Fraud Standard (SAS 151)

Stay current with evolving standards and understand what they mean for your work.

This webcast is part of the New Standards Learning Series, designed to provide timely, practical learning on new and emerging professional standards.

Key Topics

• Scope, terminology, and determining components in a group audit
• Acceptance, planning, risk assessment, materiality, and where audit work is performed
• Auditing the consolidation process and responding to assessed group risks
• Component auditors versus referred-to auditors, including direction, supervision, review, and reference considerations
• Completion, communications, documentation, and evaluating sufficient appropriate audit evidence

Learning Outcomes

• Determine whether financial statements are group financial statements.
• Identify useful components for group financial statements.
• Determine the planning requirements of a group audit, linking assessed group risks to the locations, processes, and people performing the work.
• Recognize the importance of proper direction, supervision, communication with, and evaluation of component auditors, or appropriately making reference to a referred-to auditor.

Who Will Benefit

• CPAs and auditors who perform or supervise audits of group financial statements under generally accepted auditing standards (GAAS)
• Audit partners, managers, and senior staff responsible for planning, directing, reviewing, or completing group audits
• Practitioners auditing entities with subsidiaries, branches, divisions, shared-service centers, equity-method investees, or work performed by other auditors