What criteria might the group engagement team use to identify significant components? Select all that apply. Components that are likely to include significant risks of material misstatement of the component financial statements Components that are likely to include significant risks of material misstatement of the group financial statements Components that are individually financially significant to the group ( 15% or higher of the appropriate benchmark) Components engaging in complex transactions, such as foreign currency transactions or derivatives that expose the group to significant risk Obtaining an understanding of the consolidation process may include matters relating to which of the following? Select all that apply. Group management's process for ensuring complete, accurate and timely financial reporting by components The procedures for eliminating intra-group transactions and unrealized profits and intra-group account balances The extent to which component management has an understanding of the applicable financial reporting framework The use of service organizations True or False: Group management's instructions to components ordinarily cover the accounting policies to be applied, statutory or other disclosure requirements applicable to the group financial statements and a reporting timetable. The group engagement team obtains an understanding of the instructions as part of obtaining an understanding of the consolidation process. True False.

1. What criteria might the group engagement team use to identify significant components? Select
all that apply. Components that are likely to include significant risks of material misstatement of
the component financial statements Components that are likely to include significant risks of
material misstatement of the group financial statements Components that are individually
financially significant to the group ( 15% or higher of the appropriate benchmark) Components
engaging in complex transactions, such as foreign currency transactions or derivatives that
expose the group to significant risk Obtaining an understanding of the consolidation process may
include matters relating to which of the following? Select all that apply. Group management's
process for ensuring complete, accurate and timely financial reporting by components The
procedures for eliminating intra-group transactions and unrealized profits and intra-group
account balances The extent to which component management has an understanding of the
applicable financial reporting framework The use of service organizations True or False: Group
management's instructions to components ordinarily cover the accounting policies to be applied,
statutory or other disclosure requirements applicable to the group financial statements and a
reporting timetable. The group engagement team obtains an understanding of the instructions as
part of obtaining an understanding of the consolidation process. True False