An integrated audit usually means one engagement that covers both the financial statements and the entity's internal control over financial reporting. A group audit is an audit of consolidated financial statements, where the group auditor relies on work done at subsidiaries and other components. The two answer different questions and can happen at the same time. One is about what is examined. The other is about how the work is spread across entities.
Last reviewed: 17 October 2026. Facts checked. We ran three web searches: integrated audit, SA 600 group audits, and PCAOB AS 2201. The PCAOB page returned a 403 error, so we did not read AS 2201 directly. The search summary says AS 2201 covers an audit of internal control over financial reporting integrated with the financial statement audit, with testing designed to serve both. We opened the ACCA group audit page, but it returned only site navigation. For group audits we relied on search summaries of an NFRA exposure draft of SA 600 and international materials on ISA 600 (Revised). We did not read the final ICAI SA 600 text. Definitions of "integrated audit" vary by source, as explained below.
What "integrated audit" means
Most sources use it in the US sense. After the Sarbanes-Oxley Act, the auditor of certain listed companies audits the financial statements and also the internal control over financial reporting (ICFR), together. PCAOB AS 2201 is the standard. Search summaries say the two objectives are not identical, so the auditor must plan work that meets both, and control testing is designed to serve both.
Other sources use "integrated audit" more loosely. One glossary we found uses it to mean financial and operational audits combined into a single engagement. A third sense is a combined review of several management systems; see integrated management system audit.
So when someone says "integrated audit", ask which one they mean.
In India, the equivalent idea is that a company's auditor reports on internal financial controls over financial reporting for companies where the Companies Act requires it, alongside the financial statements. We did not verify the current applicability rules for this article, so check section 143(3)(i) and the ICAI guidance note. The relevant background is in ICFR automation and CARO 2020 and SOX 404 explained.
What a group audit is
A group audit is an audit of group financial statements, meaning the consolidated statements of a parent and its subsidiaries, associates and other components. Search summaries of ISA 600 and the NFRA draft of SA 600 say it covers special considerations when component auditors are involved. In the revised ISA, component auditors are part of the group engagement team, and the group engagement partner stays responsible for directing, supervising and performing the audit.
Typical work: understand the group, identify risks at group and component level, decide which components need what work, instruct and review component auditors, audit the consolidation and eliminations, and form a view on the group statements. Our guide to SA 600 and using the work of another auditor covers the India detail, and the intercompany reconciliation article covers a frequent problem.
How they differ
| Integrated audit | Group audit | |
|---|---|---|
| Key question | Are the statements and the controls over reporting sound? | Are the consolidated statements fairly presented, given work across components? |
| What is combined | Two audit objectives in one engagement | Work of many auditors and entities |
| Typical standard | PCAOB AS 2201 (US); in India, internal financial controls reporting | ISA 600 (Revised) and SA 600 |
| Opinion | On statements and on internal control over reporting | On the group financial statements |
| Main challenge | Linking control testing to the audit | Direction, supervision and consolidation |
They can overlap. A listed multinational's auditor may run an integrated audit that is also a group audit.
Related audit types
- Statutory audit. Often the legal frame. See statutory audit explained.
- Consolidated audit. A common name for a group audit in India.
- Joint audit. Two firms share one audit and sign together. This is different from a group audit.
How to approach each
Integrated audit steps
- Confirm what the engagement covers: statements only, controls only or both.
- Scope the controls that matter to reporting.
- Document and test them, at design and operation.
- Use the results to set substantive work.
- Form both conclusions and report.
Group audit steps
- Understand the group structure and reporting calendar.
- Identify components and set the work for each.
- Issue clear instructions to component auditors.
- Review their work and discuss significant issues.
- Audit consolidation adjustments and intercompany eliminations.
- Conclude on the group statements.
Checklist
- Meaning of "integrated" agreed in the engagement letter
- Controls in scope listed, if applicable
- Group structure and components mapped
- Component auditors' independence and competence considered
- Group instructions issued in writing
- Component work reviewed and recorded
- Consolidation adjustments tested
- Intercompany balances reconciled
- Group report and any control report drafted
Frequently Asked Questions
What is an integrated audit in simple terms?
Usually one audit covering both the financial statements and the controls over financial reporting, with testing planned to serve both.
Is a group audit the same as a consolidated audit?
In everyday use, yes. A group audit is an audit of consolidated financial statements.
Does integrated audit apply in India?
The US term comes from SOX. India has a similar requirement on internal financial controls for companies where the Companies Act applies. We did not verify applicability, so check current rules.
Who is responsible in a group audit?
The group engagement partner remains responsible for the group audit, including work by component auditors, according to the summaries of ISA 600 we read.
Can a group audit be integrated?
Yes. A group's auditor can audit controls and the consolidated statements in one engagement.
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