ISCA Audit Manual for Group Entities

The Institute of Singapore Chartered Accountants (the Institute) is pleased to publish the ISCA Audit Manual for Group Entities (Manual).

About this Manual:

This Manual is an illustrative guidance to assist auditing professionals in carrying out group audits. The Manual is intended to help auditing professionals understand and effectively apply SSA 600 (Revised) Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors) in group audits. In the performance of their professional duties, it remains incumbent on them to exercise their professional judgement or seek independent professional advice and verification if necessary.

The Manual shall be read in conjunction with the Singapore Companies Act 1967, the applicable Singapore Standards on Auditing (SSAs), the applicable Singapore Financial Reporting Standards (FRSs) and any other regulatory requirements that are deemed appropriate. The contents in this Manual are not substitutes for reading the SSAs but rather as a supplement to support consistent application of these standards.

Important notices:

  • By adopting this Manual, the auditing professional has agreed to the Terms of Use  of this Manual.
  • Due to the inherent dynamic nature of group audits, the use of the Manual, in whole or in part, shall not be presumed to assure compliance with the requirements expected and shall not be relied upon as containing, professional or expert advice.
  • Every audit engagement is different, and the audit programs provided in this Manual shall be tailored to the circumstances of individual engagements before use.
  • All contents in this Manual are based on the SSAs in place as at December 2024. SSAs issued by the Institute after December 2024 are not incorporated in this Manual. It is the responsibility of the auditing professionals to ensure that they are using the most up-to-date standards and/or guidance available at the  ISCA Knowledge Centre.

ISCA AMGE *Updated February 2025*

The ISCA Audit Manual for Group Entities has been updated to provide guidance due to the revision of SSA 600 (Revised) that is effective for audits of group financial statements for periods beginning on or after 15 December 2023.

Practitioners are encouraged to refer to the Audit Bulletin (AB) 6: Key Revisions to Group Audits - SSA 600 (Revised) on the key changes and guidance to address implementation challenges, including applying the new risk-based approach in planning and performing a group audit engagement, with emphasise on Section 7. Documentation and Retention of Audit Evidence, where the group auditor should:


Fulfil the documentation requirements under SSA 600 (Revised) paragraph 59 in the group auditor’s file, including documentation on:

  • Communications from component auditors in accordance with SSA 600 (Revised) paragraph 45;
  • Review of additional component auditor work papers in accordance with SSA 600 (Revised) paragraph 47.

Consider the need to summarise, replicate or retain copies of certain component auditor documentation to supplement the description of a particular matter in communications from the component auditor with reference to SSA 600 (Revised) paragraph A176.

Key Changes

Working paper referenceWhat has changed?

Guidance Notes

AA1.2GN, AA4.1, CC1.0GN, CC2.0GN, CC2.2GN, CC3.0GN, CC3.1GN, CC4.0GN, CC4.1GN, CC5.0GN, CC5.1GN, CC7.0GN, CC7.1GN, CC7.2GN, CC7.3GN, CC9.0GN, CC9.0GT, DD2.2GN

Updated guidance notes to reflect corresponding working paper changes from the revision of SSA 600 (Revised) and confirming amendments, SSA 315 (Revised 2021) and SSQM 1.

Section AA

AA1.3, AA3, AA7, AA7.1

Section BB

BB1, BB1.1, BB1.3, BB2.1


Section CC

CC, CC1, CC2, CC2.1, CC2.2, CC3.1, CC4, CC4.1, CC5, CC5.1, CC7, CC7.1, CC7.2, CC7.3, CC8.2, CC9

 

Section DD

DD2.1, DD2.2


Section EE

EE1


Section GG

GG, GG1, GG2, GG2.1, GG2.2, GG2.3, GG2.4, GG2.A, GG2.C


Note to the following index changes:

GG2.3 -> GG2.X

GG2.4 -> GG2.3

GG2.5 -> GG2.4

GG2.6 -> GG2.5

GG2.7 - > GG2.6

GG2.8 - > GG2.7


Removed from this version:

GG1.1

 

Updated to reflect changes from the revision of SSA 600 (Revised) and confirming amendments, EP200, SSA 315 (Revised 2021), SSQM 1 and editorial changes (Index changes and renaming of working papers).

Key changes reflects the introduction of a risk-based approach to planning and performing a group audit:(i) Revision to the scoping consideration based on a risk-based approach and the removal of 'Significant Component' concept, with focus on how the assessed Risk of Material Misstatement of the group FS are addressed, and identifying components where further audit procedures will be performed and the nature, extent and timing of those procedures, including any restriction on access to information or people.

(ii) An enhanced group audit instruction and relevant working papers in guiding engagement team communications to ensure that they are sufficiently and appropriately involved in the component auditor’s work, emphasizing of the proactive management of quality at the group and component level by the group auditor, due to the enhanced responsibility for the group auditor and group engagement partner in the direction and supervision of Component Auditors and the review of their work.


 

 

ISCA Audit Manual for Group Entities is now available for download for all ISCA Members on a complimentary basis.