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

Tamsin Reeve is engagement partner for Orchid Group. Component auditor Delmar LLP audits a subsidiary in another jurisdiction and will perform work on financial information for the group audit. The group team must decide how far to involve itself in Delmar's work. Which statement is correct under ISA 600 (Revised)?

The group engagement partner remains solely responsible for the group opinion and must be sufficiently and appropriately involved in component auditors' work, directing and supervising in line with assessed risks. Responsibility is not shared or reduced, the report should not refer to the component auditor, and network membership does not remove the evaluation.

1. ABecause Delmar is a separate firm, the group engagement partner's responsibility for the group opinion is reduced in proportion to Delmar's work
2. BThe group engagement team may refer to Delmar in the auditor's report to share responsibility for the group opinion
3. CThe group engagement team need not evaluate Delmar's competence and capabilities if Delmar is a member of a recognised international network
4. DThe group engagement partner remains solely responsible for the group opinion and must be sufficiently and appropriately involved in the work of component auditors, with the nature and extent of direction and supervision based on assessed risksCorrect