If a listed company's subsidiary's financial statements are not...

If a listed company's subsidiary's financial statements are not subject to a deed of cross guarantee or a class order they are required to be separately audited and lodged with ASIC. To separately audit requires a level of materiality relevant to the subsidiary, not the group.

With the DOCG a subsidiary's transactions are still audited but are audited on the basis of being part of one large company comprising the group. It does not mean the quality of the audit or various tests and reviews undertaken by auditors are substandard in any way.

Some subsidiaries may have many transactions, some few and some dormant. They are all aggregated and consolidated into one set of groups financial statements where all transactions between them are eliminated so as to present a picture of the group's dealings with outside parties.