audits of group of financial statements

Question 1

component def

Answer 1

an entity for which group or component management prepares financial info that is required by the applicable financial reporting framework to be included in the group financial statements

Question 2

component auditor

Answer 2

an auditor who performs work on the fin info of a component that will be used as audit evidence for the group audit. may be part of the group engagements partner firm a network affiliated firm, or another unrelated firm.

Question 3

group financial statements

Answer 3

financials that include the financial info of more than one component

Question 4

group wide controls

Answer 4

controls over group fin reporting

Question 5

significant component

Answer 5

a component identified by the group engagement team that

is of individual fin significance

is likely to include sig risks

Question 6

the group engagement partner is responsible for

Answer 6

direction, supervision, performance of audit with laws and regulatory and if the audit report is appropriate.

Question 7

reference to component auditor should not be made ulness

Answer 7

component f/s use the same framework

component auditor has complied with gas

component auditor has issued a report that is not restricted as to use

in deciding whether to use read component audit work and decide if there is any significant findings

Question 8

in making reference to the component auditor report

Answer 8

the group auditor report work should clearly indicate that the component was audited by the component auditor.

if group engagement partner assumes responsibility for component auditor work then there will be no reference to component.