Koncernrevision og ISA 600R: Teoretiske ændringer, praktiske konsekvenser

Nassir Abdinur Ahmed & Andreas Røntved Vestergaard Olesen

Student thesis: Master thesis


The majority of the largest, most complex and most significant companies in the world consist of groups with subsidiaries consolidating their financial statements. An international audit standard specific for group audits has never been known to exist not even in the largest economies like USA or UK. In reaction to a series of scandals the public has demanded regularities resulting in the creation of ISA 600 concerning audits of group financial statements beginning on or after the 15th of December 2009. This leads us to the main purpose of this master thesis, which is to thoroughly review and describe the changes that the new ISA 600 is causing and in this extension, to make a comparative analysis between the theoretical changes and the practical consequences. This should lead to an understanding of whether the ISA 600 is causing the Auditor to change the focus on the audit, and if it does, whether it will improve or aggravate the audit in ways different from before. To supplement the main investigation, the present thesis will address a series of questions about the effect of ISA 600, for example:  What does ISA 600 contain?  Which changes to the audit is the new audit standard causing compared to previous local regulations?  Which effects do the audit experts think that ISA 600 is having? (Her har jeg lavet det til flertal – ekperterne)  Does ISA 600 have an effect relating to the cost of the audit? These questions and several more are contributing to a better understanding of the consequences due to the implementing of a new audit standard. The thesis is divided into two main areas/parts. First a theoretically study of ISA 600 and second an empirical analysis. The theoretical study is step by step going through the main components in the new audit standard. The theoretical area/part is also comparing the new ISA 600 with previous Danish regularities concerning group audits, with the purpose of identifying changes in the regularities to a group audit. Furthermore this chapter/part is supplying the reader with actual practical examples of how to comply with the new requirements within certain areas. The empirical analysis is based primarily on interviews. The interviews are conducted with respondents who are professional experts with focus on either the theoretical aspect or the practical aspect of a group audit. This means that all of the respondents are either placed in a large audit company with focus on implementing the new audit standard to the general audit procedures or that the respondents are the audit partners on large group audits with the responsibility to comply with the new requirements. Finally based on these experts’ opinions, the gathered empirical information is compared with the theoretical part to conclude whether the ISA 600 is causing any changes to the audit procedures and whether these changes are for the better or worse. Based on the performed study, it is concluded that ISA 600 has changed the audit approach. The group auditor is now more involved with the component auditor. The group auditor is now able to make a more nuanced scoping of the components. This means that some components are audited by the group auditor instead of a component auditor. This approach focuses on the risk in the group audit. This means that the audit is able to be more efficient than previously.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2010
Number of pages173