The International Auditing and Assurance Standards Board (IAASB) has released International Standard on Auditing (ISA) 600 (revised). This standard addresses special considerations that apply to audits of group financial statements (group audits).
IAASB chair Tom Seidenstein said: “ISA 600 (Revised) is a significant step forward to enhance the consistent performance of quality group audit engagements and thereby supports users’ interests and broader financial stability. Group audits is an area identified by regulators requiring attention. The changes in the standard build off other recent IAASB revisions, such as the revisions to the quality management standards, and should enhance audit quality by strengthening the accountability of group auditors and clarifying the interactive relationship between group and component auditors.”
ISA 600 (Revised) includes a risk-based approach to planning and performing a group audit. The approach focuses the group auditor’s attention and work effort on identifying and assessing the risks of material misstatement of the group financial statements and designing and performing further audit procedures to respond to those assessed risks.
The revised standard becomes effective for audits of group financial statements for periods beginning on or after 15 December 2023.