Introduction and recap

In this lesson

1. 0:00 Advanced Audit and Assurance: Group Audits
2. 0:17 Group reporting recap and consolidation basics
3. 2:00 Consolidation adjustments and goodwill recognition
4. 3:51 Associates and equity accounting explained
5. 4:36 Individual company audits and component auditors
6. 5:48 Group auditor's role and consolidated statements

About this lesson

You'll learn how subsidiaries, associates, and other components are combined in consolidated financial statements, and why the distinction between full consolidation and equity accounting matters for audit purposes. This session sets the foundation for Advanced Audit and Assurance (AAA), covering key concepts like goodwill, non-controlling interests, and consolidation adjustments that you'll encounter throughout the group audit process. The lesson uses a practical group structure example to illustrate how individual company financial statements are brought together, and introduces the critical roles of both the group auditor and component auditors. You'll understand why component auditors may audit individual entities within a group, and how the group auditor's responsibility extends beyond individual audits to ensure the consolidated financial statements present a true and fair view of the enlarged group. This recap prepares you for deeper exploration of acceptance and planning considerations, component auditor involvement, and the specific challenges of transnational and joint audits in part two.

Duration: 7m