Conducting Effective and Efficient Group Audits

Overview

Group audits can be challenging, particularly when multiple components, locations, systems and audit teams are involved. Revised CAS 600 introduced a more risk-based approach to planning and performing group audits, with greater emphasis on the group auditor’s responsibility for identifying and assessing risks, determining where audit work should be performed, and directing, supervising and reviewing the work of component auditors.

Topics include identifying components, establishing component performance materiality through a 5-step approach, understanding the group and its system of internal control, identifying and assessing risks of material misstatement and determining the appropriate audit response. The session also reviews the specific requirements when component auditors are involved.

The course combines the technical requirements with practical guidance, examples and common pitfalls to help auditors apply the standard effectively and efficiently in real-world engagements.

Learning Objectives

By the end of this session, participants will be able to:

• Explain the key requirements and risk-based approach of Revised CAS 600, including component identification, materiality and aggregation risk.
• Appreciate how to calculate component materiality
• Apply practical strategies for planning and conducting group audits
• Evaluate role and significance of component auditors’ work
• Implement appropriate procedures to obtain sufficient audit evidence
• Navigate challenges in group audits

Verifiable CPD

2.0 hour