Audit of Consolidated Financial Statements-Using Work of Another Auditor Parent auditor to consider observation of component auditor as per SA 600-ICAI
ICAI Announcement
I. The Council of ICAI at its 365th meeting held on May 17-19, 2017 considered a matter regarding amendment to paragraph 17 of Revised Guidance Note on Audit of Consolidated Financial Statements issued in October 2016. At the meeting, the Council noted that the members had expressed concerns regarding the 3rd bullet point of Paragraph 17 of Guidance Note (text given below) and requested that the guidance given therein needs to be clarified.
II. After detailed deliberations, the Council concluded that the 3rd bullet of Paragraph 17 of the Guidance Note requires to be amended to clarify that the intent of the Guidance Note was also to ensure compliance of SA 600 in such matter. Accordingly, the Council decided to amend the aforesaid 3rd bullet in the following manner:
While considering the observations (for instance modification and /or emphasis of matter/other matter in accordance with SA 705/706) of the component auditor in his report on the standalone financial statements, the parent auditor should comply with the requirements of SA 600, “Using the Work of Another Auditor”.
This is for information and compliance to all concerned.
Issued under the authority of the Council of ICAI.
Chairman,
Auditing and Assurance Standard Board
In absence of mala fide intention bank should not be treated as assessee in default for late deduction and deposit…
Whether bank account was fraudulently open in the name of assessee is question of fact. High Court declined to entertain…
SBI Concurrent Auditor Empanelment of Chartered Accountant Firms for FY 2024-25 SBI Concurrent Auditor Empanelment of CA Firms for FY…
Change in the constitution of Appellate Authority for CAs CSs and Cost Accountants In 2015, the Ministry of Corporate Affairs…
Trade Tax Department was unjustified in retaining refund beyond stipulated period and adjusting it against default notices issued subsequently. In…
Notice issued u/s 143(2) prior to filing of return of income by the assessee was invalid. Before filing ITR provisions…