This could mean that Carrey Associates are self-reviewing work which they have performed during internal audit and are unlikely to highlight any potential misstatements in case their work quality is questioned by the Cameron Co. 

Additionally, if they have a large portion of their fees from Cameron Co, they may be reliant on these fees causing a self-interest review as they may be less likely to highlight misstatements for fear of losing work. 

The firm should review the work performed for internal audit, including the resources used and barriers for information to ensure that there is no / limited self-review threat.

Sufficient audit testing needs to be completed to ensure we can provide an accurate audit opinion.

The group audit team should have obtained enough evidence and documented the difference between the local accounting rules and IFRS. Only then it would be possible to state whether such differences are material or not.

James Co will be used to auditing accounts that follow IFRS and therefore could have missed mistakes in the accounts of Cameron Co if they're not familiar with the differences that need to be adhered to in the local accounting standards

The audit partner of James Co needs to ensure that the audit team is trained up on the differences between the local accounting standards and IFRS, and perform more tests to ensure these have been used correctly

This could mean that the subsidiary audit firm are not capable of conducting the audit and therefore their opinion and the audited figures cannot be relied upon for accurate consolidation. 

As such, the Group audit firm should obtain more information regarding the competency of the subsidiary firm.

The audit partner will know how James & Co operates and might prevent misstatements from being found. They might use imitation tactics on their former colleagues to manipulate their samples and redirect their searches. The auditors of James & Co should not just reply on this audit partner's representation but review the controls

the Subsidiary Cameron should have followed IFRS according to accounting standard.

Group should have ensure the consolidation was done properly as they are responsible

This being said, there was no mention of audit work in relation to the skills and ability of Carrey Associate's, thus James & Co might be relying blindly on the work of the component auditor.

Relevant safeguards and skills and ability work on the component auditor should be documented on the audit file to close off the risks of familiarity and lack of competence of component auditor.

this is going to assess if we need to make any impairment review to the intangible asset in near future.