Significant component definition
Significant component means a component that has been identified at the group level as likely to include significant risks of material misstatement of the group financial statements. This could be due to (a) the nature of, and circumstances specific to, the component (risk), or (b) the individual financial significance of the component to the group (size).
Significant component means a component that is of individual financial significance to the group or a component that has been identified at group level as likely to include significant risks of material misstatement of the group financial statements.
Significant component. - means aA component that has been identified at the group level as likely to include significant risks of material misstatement of the group financial statements (.e., significant risks that require special audit consideration – see ISA 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement”). This could be due to (i) the nature of, and circumstances specific to, the component (risk), or (ii) the individual financial significance of the component to the group (size). (See paragraphs 15-16.)