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

Harlow Group's auditor, Crestview LLP, is the group engagement partner for the audit of consolidated financial statements. Under ISA 600 (Revised), who holds overall responsibility for managing and achieving quality on the group audit engagement, including work performed by component auditors?

The group engagement partner is responsible for managing and achieving quality on the group audit, including work done by component auditors. ISA 600 (Revised) treats the group auditor as responsible for the opinion and for direction, supervision and review, so using component auditors never transfers this responsibility.

  1. AThe group engagement partnerCorrect
  2. BEach component auditor for its own component
  3. CThe group's audit committee
  4. DThe group finance director

Explanation

ISA 600 (Revised) states that the group engagement partner is responsible for the direction, supervision and performance of the group audit and for the auditor's report. This responsibility is not reduced by using component auditors. Component auditors are responsible for their own work, but they do not take over the overall responsibility.

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