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Sub: Advanced Auditing Topics Group audit applies to audit engagements for group financial statements, in particular...

Sub: Advanced Auditing Topics

Group audit applies to audit engagements for group financial statements, in particular those in which part of the work related to the financial statements on which the principal auditor is reporting is performed by other auditors (component auditors). How can the principal auditor report on the component auditor’s contribution?

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If the principal auditor wants to report on the components auditor's contribution he may do so by giving a  reference of the component auditor contribution in the audit report. The same can only be done after the consent of the component auditor The report will clearly state what responsibilities were held by each of the auditor in introductory para and ,scope and opinion para. The report will clearly state which portion of the financial statement is audited by the component auditor and which component is audited by the principal auditor. Principal auditor may use total assets or total revenue or any other appropriate criteria as the basis for reporting the responsibility of each auditor.  

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