Consolidations

Overview:

Audit procedures performed on detailed consolidation processes form an integral part of performing group audits. In order to test the consolidation processes and workings of the client, the auditor needs to be familiar with the correct accounting treatment of consolidation entries as required by the financial reporting framework. Auditors must also consider group risk and the possible fraud risk with intercompany elimination entries. Furthermore, auditors often neglect to document audit procedures performed on detailed consolidation processes, over and above the accounting workings.

This course provides a practical understanding of key requirements relating to consolidation procedures on group audits, and how to approach these procedures appropriately and in an efficient manner. Participants will learn how to apply these requirements and principles in practice through discussion of practical examples.

Content and outline:

To explain the following concepts and demonstrate their practical application:

·        ISA 600 requirements for consolidation procedures performed on audits of group financial statements

·        Consideration of financial reporting framework requirements

·        Documentation of audit procedures performed on consolidation workings

·        Common working paper deficiencies

Certification:

Upon completion of the quest, participants will receive a verifiable Bronze LEAF Certificate.