AAA – L3 – SA – Q4.8 – Group audits

What must a group auditor communicate to group management?

Question

Which of the following items shall be communicated by a group auditor to the group management?

1 an overview of the planned scope and timing of the audit

2 an overview of the work to be performed at the components of the group

3 component performance materiality

4 Any fraud or suspected fraud

A 1,2,3 and 4

B 1 only

C 1 and 4 only

D 1,2 and 4 only

Answer

Explanation: A group auditor must communicate to group management the planned scope and timing of the audit (1), the work to be performed at components (2), and any fraud or suspected fraud (4), as these are critical for coordination and oversight. Component performance materiality (3) is typically communicated to component auditors, not group management, making option D (1,2, and 4) correct.

Tags: Audit Scope, Communication, Component audit, Fraud, Group auditor
Level: Level 3

Topic: Group audits

Uploader: Salamat Hamid