Group audit component
A component is an entity, business unit, function, business activity or combination determined by the group auditor for planning and performing audit procedures in a group audit. Components need not correspond exactly to legal subsidiaries; the group auditor determines the appropriate approach in the circumstances.
Worked example
A group auditor identifies a shared payroll function and a subsidiary as relevant components for planned work.
Common mistake
Do not assume every component must be a separate legal entity or that a component auditor automatically issues a separate statutory opinion.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |