Companies Act 2014 section 1527

Audit of group accounts – responsibility of group auditor

Section 1527 sets out the responsibilities of the group auditor when conducting a statutory audit of group financial statements, including accountability for the audit report, evaluation and documentation of component auditors' work, and obligations when cooperation from other auditors cannot be secured.

• The group auditor bears full responsibility for the statutory auditors' report on the group financial statements, and must also ensure compliance with EU Regulation 537/2014 where the holding undertaking is a public-interest entity.
• The group auditor must evaluate, review and document the work of all auditors contributing to the group audit, retaining sufficient records to allow the Supervisory Authority or recognised accountancy body to carry out quality assurance inspections.
• As a condition of relying on other auditors' work, the group auditor must obtain their agreement to transfer relevant documentation; if this cannot be secured, the group auditor must take additional steps — such as performing or outsourcing further audit work in the relevant subsidiary — and notify the Supervisory Authority or recognised accountancy body.
• When subject to a quality assurance inspection, review or investigation, the group auditor must make available all relevant documentation and working papers relating to the group audit, and the Supervisory Authority may request further documentation from competent authorities in other EU Member States.