The Worldwide Auditing and Assurance Requirements Board launched a revised commonplace Thursday to give attention to the particular concerns that apply to audits of group monetary statements.
Worldwide Customary on Auditing (ISA) 600 (Revised) offers with group audits, which are sometimes extra sophisticated and difficult to carry out than single-entity audits as a gaggle might have many various entities or enterprise items throughout numerous jurisdictions, and part auditors could possibly be concerned.
ISA 600 (Revised) takes a risk-based strategy to planning and conducting a gaggle audit. The brand new strategy goals to pay attention the group auditor’s consideration and work on figuring out and weighing the dangers of a fabric misstatement of the group monetary statements and designing and performing extra audit procedures to answer these dangers. The usual-setters acknowledged that part auditors will be, and regularly are, concerned in all phases of a gaggle audit. The usual employs a relatively clear, proactive and scalable strategy for group audits that can be utilized in in the present day’s evolving group audit constructions.
“ISA 600 (Revised) is a big step ahead to reinforce the constant efficiency of high quality group audit engagements and thereby helps customers’ pursuits and broader monetary stability,” mentioned IAASB chair Tom Seidenstein in a press release Thursday. “Group audits are an space recognized by regulators requiring consideration. The adjustments in the usual construct off different current IAASB revisions, such because the revisions to the standard administration requirements, and may improve audit high quality by strengthening the accountability of group auditors and clarifying the interactive relationship between group and part auditors.”
Along with the usual, the IAASB, which is affiliated with the Worldwide Federation of Accountants, has posted a foundation for conclusions and truth sheet on the IAASB web site.
The revised commonplace takes impact for audits of group monetary statements for intervals beginning on or after Dec. 15, 2023.