Proposed Revisions to ISA 600 Audits of Group Financial Statements

  • Auditing

The International Auditing and Assurance Standards Board (IAASB) is consulting on its Exposure Draft, ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors).

The proposals in the Exposure Draft would: 

  • Clarify the scope and applicability of the standard.
  • Emphasise the importance of exercising professional scepticism throughout the group audit.
  • Clarify and reinforces that all ISAs need to be applied in a group audit through establishing stronger linkages to the other ISAs, in particular to proposed ISA 220 (Revised), ISA 315 (Revised 2019) and ISA 330.
  • Focus the group engagement team’s attention on identifying and assessing the risks of material misstatement of the group financial statements and emphasises the importance of designing and performing procedures that are appropriate to respond to those assessed risks. When component auditors are involved, the proposed standard highlights the importance of the group engagement team’s involvement in the component auditor’s work.
  • Reinforce the need for robust communication and interactions between the group engagement team, group engagement partner and component auditors.
  • Include new guidance on testing common controls and controls related to centralised activities.
  • Include enhanced guidance on how to address restrictions on access to people and information.
  • Enhance special considerations in other areas of a group audit, including materiality and documentation.

Consultation Document

(link through to IAASB site)

Have a look 


Commenting on the Proposals

This is an important opportunity for you to have your say about these international proposals.

The NZAuASB’s strategic objective is to adopt international auditing and assurance standards. Generally, once a standard has been issued by the IAASB, the NZAuASB then issues the New Zealand equivalent standard. This is usually without further consultation, unless compelling reasons have been identified to amend the standard for use here in New Zealand.  

The NZAuASB will consider all feedback when submitting its response to the IAASB.  

  • Share your views with the NZAuASB by 20 August 2020 (using the secure online form below); or
  • Respond directly to the IAASB by 2 October 2020.

Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).