Koncernrevision: Et studie af udfordringerneved udførelse af koncernrevision i praksis

Ditte Ulrich & Laura Marie Tawfik Thomassen

Student thesis: Master thesis

Abstract

Performing a group audit tends to be more complex than performing a normal audit. This is because the group auditor has the responsibility for the consolidated group financial statements and thereby the responsibility for every single component in the group. However, the group auditor does not audit every single component and must trust the component auditor’s work. In other words, the group auditor confirms that sufficient audit evidence is obtained for the consolidated financial statements, and that no significant findings has occurred. This requires the group auditor to obtain knowledge of the whole group and an understanding of every single component in it. The objective of this thesis is to determine which challenges that occur in the performance of a group audit. ISA 600 addresses guidance to the performance of a group audit. An auditor must follow these guidelines when performing the audit. However, not every part of the audit has clear guidance in ISA 600, and in several parts of the audit, the auditor has to make his decisions based on his gut feeling. This can be challenging for the auditor and can cause inconsistence when the authorities make an inspection. Our analysis is based on interviews with auditors and with an authority from Erhvervsstyrelsen. The combination of “both sides” (the practical side and the legal side) of an audit helps us determine whether the auditor’s ideas of challenges in a group audit are consistent with the findings that are made during inspections of group audits. When analyzing the results of the interviews we found that the main challenges that every single respondent mentions, is the collaboration between the group auditor and the component auditor. We found that the amount of supervision and the documentation of it is difficult, and is an area with findings in inspections. We also found that the auditors in several areas of the audit finds ISA 600 to be inadequate. The interviewed authority from Erhvervsstyrelsen at some point agrees on this statement. He predicts that no changes in law and regulation will be made, but he states that ISA 600 will be revised in the near future. The conclusion to the objective of this thesis is that ISA 600 might not be adequate, and that changes in guidance regarding collaboration between group-and component auditor is a necessity. It also states that this solution will not be perpetual since not every group audit can be performed by following guidance.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2018
Number of pages144
SupervisorsKim Klarskov Jeppesen