Component auditor

1. For the audit of the single entity financial statements (on which they report) component auditors only have to follow the auditing standards relevant to the audit reporting requirements of the jurisdiction in which they operate. If the group auditor needs additional work performing on components - for any reason - either the group engagement team or the component auditor(s) on behalf of the group engagement teams will perform this. 2. I think "to do this" means "to perform the necessary work" (in the preceding sentence) not to "do" the accounting (although clearly they must understand the accounting in order to audit it). The original J10 published answer went on to explain "For example, the group audit team may instruct Sidle & Co to perform work necessary for the group audit, such as verification of related parties or fair value measurements. The firm (i.e. Sidle & Co) may not have previous experience in these matters" 3.If a scenario states that IFRS has not been adopted assume separate entity financial statements for companies in that jurisdiction are prepared according to local standards. Therefore, at some point, for the consolidated financial statements, adjustments will need to be made to bring all the line items in Brass Co's financial statements in line with IFRS. Also, all IFRS disclosures relating to Brass Co that are material to the consolidated financial statements will need to be included. Responsibility for auditing these adjustments and disclosures rests with the group partner - the competence of Sidle & Co in this regard is only relevant if the questions suggests that the component auditor will be engaged to perform this work on behalf of the group auditor.