Microsoft Word A033 2010 iaasb handbook isa 600

Overall Audit Strategy and Audit Plan 

15. 

The group engagement team shall establish an overall group audit strategy and 

shall develop a group audit plan in accordance with ISA 300.

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16. 

The group engagement partner shall review the overall group audit strategy and 

group audit plan. (Ref: Para. A22) 

Understanding the Group, Its Components, and Their Environments  

17. 

The auditor is required to identify and assess the risks of material misstatement 

through obtaining an understanding of the entity and its environment.

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 The 

group engagement team shall:  

(a) 

Enhance its understanding of the group, its components, and their 

environments, including group-wide controls, obtained during the 

acceptance or continuance stage; and 

(b) 

Obtain an understanding of the consolidation process, including the 

instructions issued by group management to components. (Ref: Para. 

A23–A29) 

18. 

The group engagement team shall obtain an understanding that is sufficient to: 

(a) 

Confirm or revise its initial identification of components that are likely 

to be significant; and 

(b)  Assess the risks of material misstatement of the group financial 

statements, whether due to fraud or error.

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 (Ref: Para. A30–A31) 

                                                 

5

  

ISA 210, “Agreeing the Terms of Audit Engagements.”  

6

  

ISA 300, “Planning an Audit of Financial Statements,” paragraphs 7-12. 

7

  

ISA 315, “Identifying and Assessing the Risks of Material Misstatement through Understanding the 

Entity and Its Environment.” 

8

  

ISA 315.

 

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SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS  

(INCLUDING THE WORK OF COMPONENT AUDITORS) 

ISA 600 

 

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