Component auditor
The component auditor is the auditor responsible for auditing the component’s financial statements, including the subsidiary, associate, or investments, which are part of the consolidated financial statements that the group auditor is auditing. During the scope of the audit, there might be circumstances that require external work to be carried out by the company, predominantly on the grounds of ensuring that the overall scope and understanding of the audit can reflect the audit work, which can provide reasonable estimation about the underlying quality of the financial statements. The group engagement team must evaluate the underlying appropriateness of the performance materiality at the component level, which the group auditor himself subsequently determines. In this regard, it can be seen that the auditor who performs work on the financial information of a component used as audit evidence is used predominantly for the group audit. A component auditor in this regard might be part of the group audit engagement team located in a different location, network firm, or any other geographic location.[Wikiaccounting]
significant component auditor means, concerning a financial period of a reporting issuer, a component auditor that performs audit work involving financial information related to a component of the reporting issuer if the reporting issuer has the power to direct the component on its own or jointly with another person or company and if any of the following apply.[Law Insider]
Who is a Component Auditor? Wikiaccounting. Retrieved from: https://www.wikiaccounting.com/who-is-a-component-auditor/
Significant component auditor Definition. Law Insider. Retrieved from: https://www.lawinsider.com/dictionary/significant-component-auditor.