The formulas
- Coverage = amount in covered components / group amount
- Not covered = group amount - covered amount
How it works
Coverage measures how much of the group sits in components where the group auditor or component auditors perform audit procedures. It is a useful summary for planning and for the group engagement partner's review, alongside the risk assessment that drives which components get work.
This tool sets no target. The amounts not covered are what the group-level analytical procedures and any procedures performed centrally have to address. Use the same elimination basis for group and component amounts, or intercompany balances inflate coverage.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Should intercompany amounts be eliminated?
Yes. Measure components after eliminations so coverage compares like with like.
What about a component with a loss?
Pre-tax income coverage can exceed 100% or go negative when components have mixed results. Use revenue and assets in that case.
Does coverage replace the risk assessment?
No. A high-risk account in an uncovered component still needs a response.
Formulas on this page are the standard definitions.
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.