Group Audit — Component Auditor Instructions (SA 600)

The formal instruction a group engagement team sends a component auditor — scope of work, component materiality, and reporting deadlines — required under SA 600 for any group audit involving another auditor.

Free · CORAA original — SA-aligned

Updated 28 Jul 2026

Standard

SA 600

Sets

Component materiality, scope, reporting deadline

Requires

Component auditor independence confirmation

Also covers

Related parties, intercompany reconciliation, fraud communication

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Your firm — letterhead

Appears at the top of the document as the audit firm letterhead.

Audit firm name

Audit firm address

Used as the letterhead block.

Engagement partner

ICAI membership no.

Firm registration no.(optional)

Addressed to

Recipient of the letter — usually the company's board.

Addressed to (name / title)

Client address(optional)

Engagement details

The client and period this document is for.

Client / company name

Period ended

The financial year-end this engagement covers, e.g. 31 March 2026.

Date of letter

Component name

Component auditor — firm name

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Group Audit — Component Auditor Instructions

30 July 2026

GROUP AUDIT — COMPONENT AUDITOR INSTRUCTIONS

(SA 600 — Using the Work of Another Auditor)

To: {{component_auditor_name}}

Re: Audit of {{component_name}} for the year ended {{period_end}}, for the purposes of our group audit of {{client_name}}

We are the group engagement partner for the audit of {{client_name}} (the Group). We request you carry out the work described below on {{component_name}} (the Component) and report to us in the format and by the date specified.

1. Scope of Work Requested

Audit of the Component's complete financial statements for group consolidation purposes / Audit of specified account balances or classes of transactions only (specify which) / Specified procedures on specified items (specify).
The applicable financial reporting framework for the Component's reporting package: Ind AS / IFRS / local GAAP with reconciling adjustments.

2. Materiality

Component materiality (lower than group materiality, set to reduce to an appropriately low level the probability that uncorrected/undetected misstatements at component level, aggregated with those at other components, exceed group materiality): ____________
Component performance materiality: ____________
Threshold for reporting misstatements identified to the group engagement team, however small (clearly trivial threshold): ____________

3. Significant Risks and Areas of Focus

Risks of material misstatement identified at group level relevant to this component, and any specific audit response requested: ____________________________________________

4. Related Parties and Intercompany Balances

List of related parties relevant to the Component known to the group engagement team, and confirmation that intercompany balances/transactions with other group entities have been agreed and reconciled: ____________________________________________

5. Reporting Requirements

Reporting package / group reporting instructions to be completed and returned by: ____________
A summary of identified misstatements (corrected and uncorrected), whether individually or in aggregate exceeding the clearly trivial threshold.
Written confirmation of independence from the Group and the Component, and compliance with the Group's ethical requirements.
Communication of any matter relevant to the group engagement team's conclusion, including fraud or suspected fraud involving component management, employees with significant roles in internal control, or others where the fraud results in a material misstatement.

6. Access

We may wish to review your working papers / discuss significant matters with you / attend a closing meeting with Component management — please confirm your firm's policy on access to component working papers by the group engagement team.

For {{firm_name}}

Chartered Accountants — Group Engagement Team

_______________________________

{{engagement_partner}}, Partner

Membership No.: {{icai_membership_no}}

Date: 30 July 2026

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What’s inside

An excerpt from the template.

GROUP AUDIT — COMPONENT AUDITOR INSTRUCTIONS

Re: Audit of ___ for the year ended ___, for the purposes of our group audit of ___

We are the group engagement partner for the audit of ___ (the Group). We request you carry out the work described below on ___ (the Component) and report to us in the format and by the date specified.

1. Scope of Work Requested

↑ Excerpt only — the full template is what you download as Word

About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

Why must component materiality be set lower than group materiality?

To reduce, to an appropriately low level, the probability that the aggregate of uncorrected and undetected misstatements across all components exceeds materiality for the group financial statements as a whole — if every component used the full group materiality, the risk of the total across components being material would be too high.

What must the component auditor confirm about independence?

Written confirmation of compliance with the ethical requirements relevant to the group audit engagement, including independence, relevant to their work on the component — this is a required element of the group engagement team's evaluation of whether to use the component auditor's work at all.

What if the group engagement team isn't satisfied with the component auditor's work?

SA 600 requires the group engagement team to evaluate the sufficiency and appropriateness of the component auditor's work, which may involve discussing significant matters, reviewing relevant parts of the component auditor's working papers, or performing additional procedures — the instructions letter should reserve this right explicitly.

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