AUDB323 EXTENDED SPECIAL SEM 2019/2020 B

Tutorial Questions: Audit Of Group Financial Statements

1. Discuss the issues that may arise when a subsidiary is located overseas?

2. Siva, Saaid, Shen & Co are considering whether to act as the group auditors of the XYZ Bhd
group of companies for the year ended 31 December 2013.
a. Describe the matters they should take into consideration before accepting
appointment as group auditors.
b. Assuming they have accepted to act as group auditors what should be their primary
objectives as outlined by ISA 600?

3. You are auditing the group financial statements of the Basro Group Berhad for the year ended
30 September 2014. The group has three gorup subsidiaries: Tara Berhad, Asha Berhad, and
Wu Berhad. You are not the auditor of Wu berhad, a manufacturing company.

Decribe the audit work that you would carry out before placing reliance upon the work carried
out by the auditors of Wu Berhad.

4. ISA 600 contains extensive new requirements on the communication between parent and
component auditor.

(a) Describe the matters that the group auditor must communicate to the component auditor
at the planning stage of the group audit.
(b) Describe the matters that the component auditors need to communicate to the group
auditor.

5. Define a ‘joint audit’. What are the advantages and disadvantages of joint audit
engagements?

SRS