Groups And Related Parties

Question 1

General notes: related parties

Answer 1

• ISA 600
• ISA 550
• Component auditor(subsidiary, associate and joint venture)

Critical issues

• Scope limitation
• Materiality
• Significant component
• Communication
• Risks
• Audit plan or strategy
• Consolidation process
• Component auditor

Component materiality (At Group level)
Statutory materiality (Separate FS)
-Take the lower on when you doing materiality
- Group opinion cannot refer to component
-Component lower than group materiality

Question 2

ISA 600

Answer 2

• Link to ISA 220

- Par 8 ISA 600

Question 3

Audit strategy

Answer 3

1. Risk Assessment
   - Different year ends_Cut-off issues
   - Related parties errors IFRS 3
   - Significant change in group structure
   - Conversion errors
2. Scope
   - Place reliance ISA 600
   - Reliance may need to be placed in terms of ISA 500
3. Timing
4. Direction
5. Resources