Group Audit and Component Auditors: Who Is Responsible for the Opinion?
The group auditor owns the group opinion even when component auditors perform important work.
Group responsibility
The group engagement team evaluates risks and evidence at the group level and forms the opinion on the group financial statements.
Component work
Component auditors may perform work on subsidiaries, divisions, or other components that becomes part of the group audit evidence.
Reference or no reference
Depending on the reporting approach and facts, the report may refer to another auditor or may assume responsibility without making that reference.
Exam strategy
Separate who performed component work from who signs the group report.
The takeaway
Component auditors can perform important work, but the group auditor remains responsible for the group audit opinion.
Related Summit resources
FAQ
Can another auditor work on a component?
Yes.
Who forms the group opinion?
The group auditor.
Why does report wording matter?
It can show whether the group auditor refers to another auditor's work.