[Anonymous]

anyone please explain me the concept of group audit and what are the important points I need to considered for the exam .

Basically I want to know every thing about group and component audit.

[Anonymous]

anyone please

[Anonymous]

never reference and group auditor claims responsibility for component auditor….which is and why you should just stick with this general rule for your study purposes. the exception which is allowed only if the component auditor following GAAS (or PCAOB if applicable) and the report being general use, a division of responsibility is given in the report if reference is made, where the group auditor has no claim to the component auditors work and explicitly states what statements were part of the report of other auditors. If references are made, opinions should generally agree whether the component audit is modified or not.

[Anonymous]

thanks CPAstateofmind

[Anonymous]

The main point to remember for the component auditor is how they are treated for reporting purposes. After gaining an understanding of the component auditor's work the following may occur:

When the principal auditor DOES NOT want to accept responsibility for the component auditor's work, he MUST state a division of responsibility in the report by making reference to the work performed by the component auditor.

When the principal auditor WANTS to accept responsibility for the component auditor's work, he DOES NOT mention anything about the component auditor in the report. The principal auditor must apply the necessary procedures to the component auditor's work, such as being part of the risk assessment procedures of the component.

Hope that helps!

[Author]

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