Block 3f - Group Audit Flashcards
(110 cards)
1
Q
Special considerations
A
2
Q
Professional scepticism
A
3
Q
Planning and performing group audit
A
4
Q
Two-way communication
A
5
Q
Component auditor
A
6
Q
Adequate work
A
7
Q
Proper documentation
A
8
Q
Audit working file
A
9
Q
Different firm
A
10
Q
Acceptance
A
11
Q
First-time audit va existing client
A
12
Q
Sufficient, appropriate evidence obtain
A
13
Q
Consolidation process
A
14
Q
Doing audit of parent company
A
15
Q
Evidence from component auditor company
A
16
Q
Financial information
A
17
Q
Group audit opinion
A
18
Q
Size, complexity
A
19
Q
Resources
A
20
Q
Challenges
A
21
Q
Logistics
A
22
Q
Other firm-audited components how many
A
23
Q
Threshold info
A
24
Q
Liasoning resources
A
25
Specific risks
26
Cooperation confirmation from component auditor
27
Good communication
28
Relevant ethical requirements
29
Competence, capabilities, experience
30
Planning stage
31
Matters to consider
32
Audit procedures
33
Significance of component
34
First time acquisition
35
Existing group
36
Judgement
37
Qualitative benchmark
38
Quantitative benchmark
39
Factors
40
Newly formed/acquired business units
41
Significant changes in entity
42
Management changes
43
Accounting policy changes
44
Revenue changes
45
Profit changes
46
Rapid growth
47
Inter-group transactions
48
Abnormal fluctuations in analytical procedures
49
Risk of unable to obtain sufficient audit evidence
50
Legal restriction on sharing group audit info
51
How determine whether sufficient, appropriate evidence has been collected
52
Specific planning considerations
53
Different year ends
54
Group structure/complexity change
55
Components materiality
56
Parent materiality
57
Group materiality
58
Consolidated numbers
59
Group auditor responsibility
60
Individual financial statements
61
3 month difference maximum
62
Management restructuring responsibility
63
Extra financial statement preparation from component management
64
Adjust subsidiary financial statements to align
65
Communication with component auditor
66
Work requested done
67
Financial information
68
Ethical compliance
69
NOCLAR by component
70
Corrected/I corrected misstatements in component financial information
71
Possible management bias indicator
72
Internal control deficiencies
73
Suspected/actual fraud
74
Communicate to TCWG significant matter
75
Overall findings
76
Audit conclusion/report
77
Consolidation process per IFRS
78
Difference in reporting dates
79
Inappropriate figures
80
Client first time producing group accounts
81
Complex consolidation process form some groups (areas of judgement)
82
Unrealized profit, accounting policy differences
83
Higher scepticism
84
Higher audit risk
85
Group-wide control for consolidation process - instructions
86
Robustness
87
Controls adequacy and operating effectiveness assessment
88
Test of controls
89
Evaluate group components classification - subsidiary, joint ventures
90
Agree consolidated financial statements figure to individual financial statements
91
Review disclosures necessary in group financial statements
92
Related party transactions
93
Minority interests
94
Investigate treatment of any components which have a different financial year end or accounting policies
95
Specific consolidation adjustments evidence
96
Goodwill and impairment
97
Intra-group transactions unrealized profit
98
Assets and liabilities fair value adjustments
99
Components foreign currency retranslation of assets and liabilities
100
Trading difficulties of subsidiary equals goodwill impairment
101
Component auditor work evaluation
102
Finalization/review stage
103
Own working papers against legal restriction
104
Group auditor discretion to direct, supervise, and review thoroughly from planning to finalization
105
Recommendations to improve
106
Identify matters to communicate with TCWG
107
Group audit opinion
108
Satisfied with component auditor and local audit teams work
109
Taken assurance
110
Professional marks
