Microsoft Word A033 2010 iaasb handbook isa 600

Consolidation Process 

Consolidation Adjustments and Reclassifications

 (Ref: Para. 34) 

A56.  The consolidation process may require adjustments to amounts reported in the 

group financial statements that do not pass through the usual transaction processing 

systems, and may not be subject to the same internal controls to which other 

financial information is subject. The group engagement team’s evaluation of the 

appropriateness, completeness and accuracy of the adjustments may include: 

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SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS  

(INCLUDING THE WORK OF COMPONENT AUDITORS) 

ISA 600 

 

611

AU

DI

TI

NG

 

•

 

Evaluating whether significant adjustments appropriately reflect the 

events and transactions underlying them; 

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Determining whether significant adjustments have been correctly 

calculated, processed and authorized by group management and, where 

applicable, by component management; 

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Determining whether significant adjustments are properly supported 

and sufficiently documented; and 

•

 

Checking the reconciliation and elimination of intra-group transactions 

and unrealized profits, and intra-group account balances.