Group audit

A group engagment team has identified a significant component for which an audit of that component's financial information will be performed by component auditor. Which step is required to be performed by the group engagement team?

• determine component materiality
• determine whether the component auditor complied with independence requirement relevant to group
• evaluate the appropriatness of component's materiality
• all of the above

An entity or business activity for which group or component management prepares financial information that should be included in thr group financial statement.

• Component Auditor
• Group
• Component
• Group Audit

A significant component is

• Individually financially significant
• Likely to include significant risks
• Both a and b
• None of the above

At Preliminary Activities Stage, evaluate whether the group engagement will be able to be involved in the work of component auditors to the extent necessary to obtain sufficient appropriate audit evidence.

• True
• False

Group wide controls may include monitoring and accounting for intra-group transactions

• True
• False

For determining individual financial significance which benchmar is used

• Asset
• Turnover
• Profit
• all of the above

Component materiality is not required to be lower than the materiality for the group financial statement as a whole.

• True
• False

Required communications to be made to the component auditor

• Performance materiality for the group financial statement as a whole
• The ethical requirements including independence relevant to group audit The group audit Strategy
• A list of related parties of which group engagement team is aware

The group engagement partner is responsible for evaluating the effect of any uncorrected misstatement whether identified by the engagement team or the component auditor

• True
• False

Component Materiality is not required to be communicated to management or those charged with governance

• True
• False