Collaborative Group Audits
Group audits are crucial for companies that operate through multiple subsidiaries or affiliates. For these kinds of audits, considerable expertise and support are necessary to accomplish these audits accurately. That is why CKH Group is here to act as group or component auditors for these segregated businesses.
As a leading CPA firm based in Atlanta, we take pride in offering Group Audit support designed to:
- Maintain consistency and uniformity
- Reduce risk or costly errors
- Provide timely, cost-effective, and efficient results
What Is A Group Audit?
For companies with more than one entity (for example, a parent company with multiple subsidiaries), an audit may be conducted on more than one legal entity as well as multiple locations or geographies. A group audit is an audit of this consolidated group of financial statements. This would be a reasonable level assurance opinion from an auditor on the fairness of the entity’s financial statements.
What is the Group Audit Process?
The process is similar to a basic financial statements audit but involves more communication and coordination between component and group auditors. It starts with the group auditor identifying significant components and then identifying competent auditors on whose audit reports they can rely. Component auditors will be given instructions as to the audit approach and reporting deadlines. Each Component auditor will report back to the group auditor in the prescribed form, upon which the group auditor will combine all findings and financial reports into an annual consolidated financial statement.
What is a Component Auditor?
To understand what a component auditor is, you must first understand what a component is. A component is an entity or business activity for which financial information is separately prepared (and is included in the group financial statements). This is most commonly a subsidiary, but it could also be an associate process, service, function, product, or geographical location. Therefore, a component auditor is the auditor of one of these entities. CKH Group would act as either the group or component auditor.
Why Choose CKH Group?
CKH Group’s Audit Services are designed to empower organizations with confidence in their financial reporting and decision-making.
With CKH Group, you’re not just getting a CPA firm; you’re gaining a trusted partner committed to your success. Discover the CKH Group advantage, where excellence, integrity, and expertise come together to create a powerful assurance partnership for you. Contact us today to explore how our External Audits can add value to your organization.