identify and describe the maters to be cosidered and procedures to be performed at the planning stage

• assessment of materality both for group and each componenets
• the impact of non-contermious year end of a group
• change group structure

recommend and discuss the communication ad content to the components

recognize the audit problems and describe proceduresL

1. business combination, include classfication of investment

2. the determination of goodwill and its impairment

3. group accounting policy

4. inter company trading

5. equity account, association and join ventures

6. changes in group structure include acquisition and disposal

7. accounting for subsidiaries in other countries

in respect of consolidated process,identify and explain the relvant audit risk and audit procedure nessary to obtain sufficient appropriate evidence

how to evaluate the audit work performed by a component auditor

explain the responsibility of the component auditr before accep appointment, and the procedures to be performed in a group situation

group and transnational entity

main issue about consolidated reports and transnatinal auditor:

1. list of laws and standards

2. seriers adjustment review if sufficient or not

3. cancellation of inter-company balances and mid-year acquisition

4. use of component audit

procedure and quality control

component auditor:

independent of entire group

experience

key issues in group or transnational audit:

1. business combination, classfication and investment

2. goodwill and its impairment

3. group accounting policies

4. inter-company transaction (trading)

5. equity accounting for associatation and joint ventures

6. change in group structures include acquisition and disposal

7. foreign subsidianary  accounting policies

8. consider hoe th group should evaluage the component audit work performance

in respect of the consolidation process, identify and explain the relevent audit risk and audit preocedure necessary to obtain sufficient appropriate evidence