Koncernrevision

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Koncernrevision

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Title: Koncernrevision
et studie af de praktiske vanskeligheder ved udførelsen af en koncernrevision
Author: Borch, Nikolaj Frausing; Cakmak, Veysel
Abstract: Performing a group audit can be very comprehensive and requires the group auditor to obtain knowledge and understanding of the whole group including all the components, which will naturally lead to a larger number of risks compared to a regular audit. For group audits, it is the group auditor’s responsibility that the consolidated financial statements for the group, which contain all of the group’s components, are not materially misstated. To address this complexity, group audit has, since 2013, been a “focus area” when the Danish Authorities monitor the auditors, through Revisortilsynet. This thesis seeks to examine which practical difficulties Danish auditors are facing when performing group audits and how these difficulties can be solved. To this end, the thesis have presented theories on auditing in order to put the Danish control system of auditors into perspective. Furthermore, the thesis have pinpointed which major differences exist between group audits and regular audits as well as what requirements are set forward by ISA 600. To assess the practical implications of group audit being a focus area in Revisortilsynet’s quality inspection, we have performed an analysis on the historical development of the number of actual rulings, related to inadequate group audit, by Revisornævnet for the period of 2010 - 2015. This analysis shows that the number of rulings on inadequate group audit are quite limited compared to the total number of rulings. When compared to other focus areas, the trend is the same. Based on this, it is our assessment that group audit should no longer be a focus area. To further examine the difficulties that Danish auditors had in the rulings by Revisornævnet, we performed an analysis on all rulings related to group audit for the period of 2010 - 2015. The analysis shows that it is most often in the planning phase of a group audit, where auditors have difficulties meeting the requirements of ISA 600. Our analysis presents a number of solutions that would have ensured that the group audits presented in the rulings would have been compliant with ISA 600. Through analyzing these rulings, it has come to our attention that the easiest and most efficient way to comply with the ISA’s requirements, is to use standardized templates in the planning phase of a group audit, thus ensuring that the group auditor does not miss any key areas in performing the group audit. Often it would not require significant effort for the group audit to be compliant. To put the analysis into perspective, we have performed an interview with Revisortilsynet. However, Revisortilsynet was, unfortunately, unable to comment on the individual rulings presented in our analysis, but the interview still provided some interesting input to our analysis. The thesis concludes that classifying group audit as a focus area has a more significant effect among auditors, than the actual effect on rulings. More focus should, therefore, be spent on communicating the experiences that Revisortilsynet achieves through their quality inspections to the Danish auditors, thereby improving the overall quality of audits performed.
URI: http://hdl.handle.net/10417/6008
Date: 2016-12-06
Pages: 161 s.
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