SSA 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) states that if the group engagement team plans to request a component auditor to perform work on the financial information of a component, the group engagement team shall obtain an understanding of the following:
Whether the component auditor understands and will comply with the ethical requirements that are relevant to the group audit and, in particular, is independent;
The component auditor’s professional competence;
Whether the group engagement team will be able to be involved in the work of the component auditor to the extent necessary to obtain sufficient appropriate audit evidence;
Whether the component auditor operates in a regulatory environment that actively oversees auditors.
ISCA developed this questionnaire to assist group engagement teams in obtaining a deeper understanding of component auditors during their group audits. However, the questions listed are not comprehensive and should be tailored to each engagement.
This questionnaire aims to provide guidance to group engagement teams and hence, it is not mandatory to use the questionnaire in all group engagements with component auditors.