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  • Acca - James

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    ellisa ramli
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    The document discusses several issues that may impact the group audit, including: familiarity threats from non-audit services provided to a component auditor, a lack of alignment between the component's local accounting standards and IFRS which could lead to material misstatements in the group financial statements, and potential questions around the competency of the group audit partner. It also notes that without more information about the component's financial assets, there is a risk the assets could be overvalued. The document stresses the need to inform those charged with governance about any issues so they can determine the appropriate next steps, such as potential reporting to regulatory authorities.

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    The document discusses several issues that may impact the group audit, including: familiarity threats from non-audit services provided to a component auditor, a lack of alignment between the component's local accounting standards and IFRS which could lead to material misstatements in the group financial statements, and potential questions around the competency of the group audit partner. It also notes that without more information about the component's financial assets, there is a risk the assets could be overvalued. The document stresses the need to inform those charged with governance about any issues so they can determine the appropriate next steps, such as potential reporting to regulatory authorities.

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    © All Rights Reserved
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    4 views2 pages

    Acca - James

    Uploaded by

    ellisa ramli
    The document discusses several issues that may impact the group audit, including: familiarity threats from non-audit services provided to a component auditor, a lack of alignment between the component's local accounting standards and IFRS which could lead to material misstatements in the group financial statements, and potential questions around the competency of the group audit partner. It also notes that without more information about the component's financial assets, there is a risk the assets could be overvalued. The document stresses the need to inform those charged with governance about any issues so they can determine the appropriate next steps, such as potential reporting to regulatory authorities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    Non-audit

    service

    Auditor responsibility -
    ICS - 8 months ago

    Familiarity threat

    ethical
    issues

    Matter to be consider before relying on component auditor

    According to standard - need to align accounting policies according to the parent (IFRS) - since not followed, more
    material misstatement in group FS? Local standard not similar to IFRS

    Group audit partner - could argue on the competency of group audit


    By default,
    investment in
    equity is
    measured using
    FVTPL

    The investments
    are then
    revalued to fair
    value at year
    end, with any
    gain or loss should have
    being shown in materiality
    the statement of level for
    PnL. component
    level first
    before group.

    the only information we have is net assets of Corden, so if 2% x 550k = 11k, thus financial asset may
    be overvalued

    must inform to TCWG/management so that, TCWG can proceed with the next step, possibly they have
    the responsibility to report the issue to the authority.

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