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Hello Tutor,
In a group audit,
a) Components auditor sets Financial statements materiality for the component and the audit opinion also (individually)
b) The group auditor is alone responsible for giving the opinion on the consolidated financial statements.
c) In the audit opinion, the group auditor should not mention component auditors work?
Thank you.
a) Yes.
b) Yes.
Not sure about c), as I am not sure how the inclusion of the mentioning of component auditor in the opinion section will put a question mark on the credibility of the group auditor?
a) No – group auditor must dictate for the consolidation of the components – as it may need to be lower than the component auditor would otherwise set for the audit of the individual entity’s financial statements. See illustration on page 99 of the notes.
b) Yes
c) Correct – see bottom of page 98.
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