The group auditor determines the scope of work to be performed on the components' financial information; some components may be audited by other auditors. The group auditor sends instructions to these component auditors and evaluates their work.
For companies with foreign subsidiaries, working with an audit firm that is a member of an international network makes it easier to coordinate component audits.
Source: BDS 600
Related terms
ConsolidationCombining the financial statements of a parent and the subsidiaries it controls as if they were a single economic entity.Independent auditReasonable assurance provided by an independent auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.SubsidiaryAn entity controlled by another entity (the parent).Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 22, 2026 · This definition is for general information only.