Revised SA 600: Enhancing Accountability in Group Audits

ICAI has approved revisions to auditing standard SA 600 for group audits, intensifying the regulation process. Despite differing views with NFRA, the revisions promote improved structural clarity. The new framework enhances accountability between principal and component auditors by establishing detailed guidelines and flexibility in auditing procedures.

The Institute of Chartered Accountants of India (ICAI) has given the nod to significant revisions in the auditing standard SA 600, a move aimed at bolstering accountability and clarity in group audits.

This decision comes amidst differing opinions with the National Financial Reporting Authority (NFRA), which has called for changes due to recent corporate fraud and audit failures.

The newly revised standard promises a clearer framework for assessing and relying on the work of component auditors, enhancing professional skepticism, and ensuring the symmetry of critical audit information.

(With inputs from agencies.)