Key Takeaways from the Group Audit: Practical Insights for Component Auditors
STANDARD UPDATES - TAX UPDATE - OUR ACTIVITIES
Key insights:
Practical Insights for Component Auditors
Group audits are not merely a collection of individual component audits. They require seamless coordination, timely communication, and consistent execution to enable the Group Auditor to express an opinion on the financial statements.
As businesses continue to expand across jurisdictions, group audits have become increasingly common. Many audit engagements now involve the component auditors located in different countries, each operating under different regulatory environments, reporting deadlines, accounting practices, and communication styles.
While Standard on Auditing (SA) 600 strengthens the responsibilities of the Group Auditor, successful group audits also depend heavily on the quality and responsiveness of the Component Auditor.
Based on practical experiences, delays in the group reporting process are rarely caused solely by technical accounting issues. Instead, they more commonly result from communication gaps, inadequate audit documentation, and unresolved audit matters that should have been identified and addressed at an earlier stage.
Understanding the Role of Component Auditors, PMK No. 44 of 2026
Requirements for Becoming a Tax Guardian and Procedures for Exercising the Rights and Fulfilling the Obligations of a Tax Guardian
This document discusses the dual aspects of global financial oversight and Indonesian tax administration updates, focusing on the critical responsibilities of component auditors under SA 600 and the newly issued Minister of Finance Regulation PMK No. 44 of 2026. It outlines key operational challenges in group audits—such as continuous communication, going concern evaluations, and component materiality—while setting clear competence requirements, registration procedures via Coretax, and a five-year cooling-off period for former Ministry of Finance employees acting as tax representatives. Ultimately, the publication highlights that maintaining strong communication, high-quality documentation, and regulatory compliance is essential for achieving seamless audit completion and legal certainty in tax representation.
Parties Eligible to Act as a Taxpayer's Representative:
- Tax Consultant - must hold a Tax Consultant License as proof of competence in taxation.
- Other Parties - must hold a Registration Certificate as proof of competence in taxation.
- Family Members - exempted from the specific tax competence requirement.
"Family" refers to a spouse, or blood/marital relatives up to the second degree of consanguinity.
AI Empowerment Training Hadori Sugiarto Ai & Rekan
The HLB Indonesia Technology Team conducted the Artificial Intelligence (AI) Empowerment Training as an initiative to introduce the
latest developments in AI
related to auditing, taxation or advisory services.
The sessions provided participants with a foundational understanding of AI while raising awareness of digital technologies relevant
to professional environment.
