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Executive Summary:

ISSAI 1600 – Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors)


This Practice Note provides supplementary guidance on ISA 600: Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors)

ISSAI Category:

Level 4: General Auditing Guidelines - General Auditing Guidelines on Financial Audit

Target Group:

Public sector external auditors


ISA 600 applies to group audits and deals with special consideration that apply to group audits, in particular those that involve component auditors.

In accordance with ISA 220 (Quality Control for an Audit of Financial Statements), the group engagement partner is required to be satisfied that those performing the group audit engagement, including component auditors, collectively have the appropriate competence and capabilities. The group engagement partner is also responsible for the direction, supervision and performance of the group audit engagement.

ISA 600 assists the group engagement partner to meet the requirements of ISA 220 where component auditors perform work on the financial information of components.

Scope - Content:

The Practice Note provides additional guidance for public sector auditors related to

  • Definitions
  • Acceptance and continuance
  • Understanding the group, its components and their environment
  • Understanding the component auditor
  • Materiality
  • Responding to assessed risks
  • Consolidation process
  • Communication with the component auditor, group management and those charged with governance of the group.

Appendices to ISSAI 1600 provide

  • An Example of basis for qualified opinion and report on other legal and regulatory requirements for use in the public sector (Appendix 1)
  • Examples of matters about which the group engagement team obtains an understanding (Appendix 2)
  • Examples of conditions or events that may indicate risks of material misstatement of the group financial statements (Appendix 3) and
  • Required and additional matters included in the group engagement team's letter of instruction
Author - Committee:

INTOSAI Professional Standards Committee – Financial Audit Subcommittee


Approved at XXth Congress of INTOSAI, Johannesburg 2010


Related Documents - Executive Summaries:
Related Documents - ISSAI Full Versions:
Related Documents - Others:

ISA 600 is applicable to auditors of public sector entities in their role as auditors of the group financial statements

ISA 220 - Quality Control for an Audit of Financial Statements

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