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Dear Tutor
I think I am confused with significant component and subsidary.
should I say significant component including subsidary? significan component could also be a business segments?
no audit for associate and JV, both of them must be disclosed in audit report?
both of them can be audited by either group autitor or component auditor?
Many thanks
“The group auditor is responsible for providing the audit opinion on the group financial statements. Components of the group financial statements can include subsidiaries, associates, joint ventures and branches. The components may be audited by the group auditor or may be audited by a different firm of auditors known as the ‘component auditors’. In addition, the group auditor will form an opinion on the parent company’s individual financial statements.”
I have no idea what you are asking “no audit … disclosed …”
The financial statements of any company are audited by the auditor appointed by the general meeting of shareholders of that company. An auditor of a parent company is group auditor if the parent is required group (consolidated) financial statements.
Where the auditor of a component is the same firm as the auditor of the parent there won’t be issues like different audit methodologies (for example).
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