Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p36
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 103332–106550

when permitted by law and regulation.

           * Participating in the closing or other key meetings between the component auditors and component management.

 1.          In applying ASA 220,[67] the group engagement partner is required to review audit documentation at appropriate points in time during the audit engagement, including audit documentation relevant to the group audit relating to:

           * Significant matters;

           * Significant judgements, including those relating to difficult or contentious matters identified during the audit engagement, and the conclusions reached; and

           * Other matters that, in the engagement partner's professional judgement, are relevant to the engagement partner's responsibilities.

    The review of such audit documentation by the group engagement partner often takes place during the course of the group audit, including the review of relevant component auditor audit documentation (also see paragraph A148).

Communications with Component Auditors (Ref: Para. 29)

 1.          Clear and timely communication between the group auditor and the component auditors about their respective responsibilities, along with clear direction to the component auditors about the nature, timing and extent of the work to be performed and the matters expected to be communicated to the group auditor, helps establish the basis for effective two-way communication.  Effective two-way communication between the group auditor and the component auditors also helps to set expectations for component auditors and facilitates the group auditor's direction and supervision of them and the review of their work.  Such communication also provides an opportunity for the group engagement partner to reinforce the need for component auditors to exercise professional scepticism in the work performed for purposes of the group audit.

 2.          Other factors that may also contribute to effective two-way communication include:

           * Clarity of the instructions to the component auditor, particularly when the component auditor is from another firm and may not be familiar with the policies or procedures of the group auditor's firm.

           * A mutual understanding that the component auditor may discuss the audit work requested to be performed, based on the component auditor's knowledge and understanding of the component.

           * A mutual understanding of relevant issues and the expected actions arising from the communication process.

           * The form of communications.  For example, matters that need timely attention may be more appropriately discussed in a meeting rather than by exchanging emails.

           * A mutual understanding of the person(s) from the group auditor and component auditors who have responsibility for managing communications regarding particular matters.

           * The process for the component auditor to take action and report back on matters communicated by the group auditor.

 1.          The communications between the group auditor and component auditors depend on the facts and circumstances of the group audit engagement, including the nature and extent of involvement of the component auditors