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Audit Risk Alert: Understanding the Responsibilities of Auditors for Audits of Group Financial Statements

Audit Risk Alert: Understanding the Responsibilities of Auditors for Audits of Group Financial Statements

AICPA

ISBN: 978-1-937-35244-8

May 2017

96 pages

In Stock

$43.75

Description

This Audit Risk Alert is intended to help auditors understand and implement the requirements of the new AU-C section 600, Statement on Auditing Standards -Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors)

It was developed to present issues that auditors may face in their current audits; focusing on emerging practice issues and current auditing developments.

The new AU-C section 600 is much more broad than previous guidance and introduces a number of new terms, concepts, and requirements related to group audits that will significantly affect current practice.

To assist auditors in implementing the provisions of AU-C section 600, this alert includes a variety of useful resources including:

  • Technical Questions & Answer sections
  • An analysis of applicability
  • A breakdown of new terminology
  • An exploration of how practice will be affected
  • Special considerations for state and local governments
  • Implementation case studies

This alert has been updated for the issuance of SAS No. 127, Omnibus Statement on Auditing Standards.

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Understanding the Responsibilities of Auditors for Audits of Group Financial Statements—2013 01-177

What Are Group Audits? 01-03

Organization of This Alert 04

Introduction to the Clarified Statements on Auditing Standards 05-20

Applicability of AU-C Section 600 11-17

Objectives of AU-C Section 600 18

Definitions  19-20

Overview of AU-C Section 600 21-72

Responsibilities of the Group Engagement Team 22-72

How AU-C Section 600 Will Affect Practice 73-161

General Practice Considerations 78-.103

Specific Application Considerations—All Group Audits 104-138

Additional Requirements Applicable When Assuming Responsibility for the Work of a Component Auditor 139-146

Considerations Specific to Audits of State and Local Governmental Entities 147-161

Resource Central 162-172

Publications 163

AICPA Online Professional Library: Accounting and Auditing Literature 164

Continuing Professional Education 165-168

Webcasts 169

Member Service Center 170

Hotlines 171-172

Appendix A—Questions and Answers 173

Appendix B—Decision-Making Flowchart 174

Appendix C—Examples 175

Appendix D—Applying Group Materiality to Components 176

Appendix E—Additional Internet Resources 177

Contents