Definition of Engagement Team and Group Audits – Proposed Code revisions


Group audits have their own set of independence challenges such as the involvement of non-network firms.

The IESBA has proposed revisions to the Code to comprehensively address independence considerations for firms and individuals involved in an audit of group financial statements, including changes to:

  • Align a number of provisions in the Code to conform to changes in the new Quality Management Standards including the definition of an engagement team in ISA (NZ) 220 Quality Management for an Audit of Financial Statements;
  • Establish new defined terms and revise a number of existing terms;
  • Clarify and enhance independence principles that apply to individuals involved and firms engaged in group audits;
  • More explicitly set out the process to address a breach of an independence provision at a component auditor firm.

IESBA Exposure Draft and Consultation Documents

Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits


The XRB consultation period finished 16 May 2022, and no submissions were received.