What you understand about ISA 600 is responding to assessed risk?

Answer 1

ISA 600, "Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)," emphasizes the need for auditors to respond to assessed risks at the group level. It requires auditors to evaluate the risks of material misstatement in the group financial statements, considering both the consolidation process and the work of component auditors. This involves obtaining sufficient appropriate audit evidence about the financial information of components, which may involve direct involvement in the audit of significant components or determining the adequacy of the work performed by other auditors. Ultimately, the standard aims to ensure a comprehensive and effective audit approach in complex group structures.