In 2010, the IAASB issued, as part of its Clarity Project, the current ISA 600 dealing with group audits. Based on the 2013 Post‐Implementation Review of the Clarified ISAs, several issues were identified with respect to ISA 600. This led to the IAASB in 2015 appointing a working group to identify and submit suggested solutions to the principal challenges posed by ISA 600 for group audits around the world. At the end of 2015, the IAASB launched some issues for public consultation through the Invitation to Comment (ITC), ”Enhancing Audit Quality: A Focus on Professional Skepticism, Quality Control and Group Audits”, and received a total of 87 responsesfrom different group auditstakeholders around the world. Among the ITC respondents were several of the largest and most recognised companies, organisations and authorities in the fields of auditing and accounting. This thesis seeks to determine which of the issues identified pose the greatest challenges in performing group audits. The approach to this has been to assess which issues have the most pervasive effect on a group audit process. We also wanted to involve rulings by the Danish Disciplinary Board on Auditors in this assessment. Regrettably, this did not produce any useful information because our analysis revealed that the rulings have primarily been given due to inadequate documentation work and possibly lacking knowledge of the Standard. The issues we decided to proceed with in our thesis are: 1) Restrictions on access to records 2) Letter box audits 3) Allocation of component materiality level 4) Scoping We have provided a discussion of these four issues based on the IAASB’s views that are evident from the ITC, responses to the ITC, and opinions expressed by respondents in our interviews. This discussion has led to specific suggested solutions that we have developed for each of the four issues.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||146|