ACCA Strategic Professional · Advanced Audit and Assurance (International) · Group audits

Harlow & Co is considering appointment as group auditor of Verity Group, which has a parent and six subsidiaries. Two subsidiaries are audited by other firms. Under ISA 600 (Revised), which matter must the group engagement partner determine before accepting the engagement?

Before accepting, the group engagement partner must conclude that sufficient appropriate evidence can reasonably be expected to be obtained for the group, including through the consolidation process and by being sufficiently involved in the work of component auditors. Using other firms is allowed, so in-house auditing of all components is not required.

1. AThat the engagement team will be able to obtain sufficient appropriate audit evidence through the group's consolidation process and component auditors, and can be involved sufficiently in their workCorrect
2. BThat every component will be audited by the group auditor's own firm to avoid reliance on other auditors
3. CThat the group financial statements will be audited at the same materiality level as each component's statutory audit
4. DThat component management has agreed in writing to the group auditor's fee