The revisions build upon the recently revised international version of the standard, with an enhanced focus on the risk of material misstatement at the financial statement level and the need for robust communication between group and component auditors.

The key changes include clarification of the following issues:

• the relationship between engagement team, group auditor and component auditor;
• group engagement partner, and their firms’, responsibilities, particularly in light of introduction of ISQM 1 and ISQM 2 updates effective from 15 December 2022; and
• relevant ethical requirements in relation to a group audit in the UK.

The consultation states: ‘In line with the requirements of ISA (UK) 220, the group engagement partner is responsible for other members of the engagement team having been made aware of relevant ethical requirements that are applicable given the nature and circumstances of the audit engagement, and the firm’s related policies or procedures.

‘Fo