Document ID: chunk:federal_register_of_legislation:F2022L00712:body:0:p13
Version: federal_register_of_legislation:F2022L00712
Segment Type: other
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Character Range: 35706–38858

the relevant ethical requirements that are applicable to the group auditorengagement team.  This is because, in a group audit, component auditors are also subject to ethical requirements that are relevant to the group audit.[28]

39.               Existing paragraph A39 is amended to read as follows:

The Australian Auditing Standards do not establish specific independence or ethical requirements for auditors, including component auditors, and thus do not extend, or otherwise override, the independence requirements of the relevant ethical requirements or other ethical requirements to which the group auditorengagement team is subject, nor do the Australian Auditing Standards require that the component auditor in all cases to be subject to the same specific independence requirements that are applicable to the group auditorengagement team.  As a result, relevant ethical requirements, including those pertaining to independence, in a group audit situation may be complex.  ASA 600[29] provides guidance for auditors in performing work on the financial information of a component for a group audit, including those situations where the component auditor does not meet the independence requirements that are relevant to the group audit.

40.               [Aus] Illustration 2A: Example Auditor's Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:

INDEPENDENT AUDITOR'S REPORT

…

Auditor's Responsibilities for the Audit of the Financial Report

…

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit.  We also:

           * …

           * Plan and perform the group audit to Oobtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to regarding the financial information of the entities or business units within the group as a basis for forming express an opinion on the group financial report. We are responsible for the direction, supervision and reviewperformance of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion.

…

Amendments to ASA 701

41.               Existing paragraph A15 is amended to read as follows:

Various Australian Auditing Standards require specific communications with those charged with governance and others that may relate to areas of significant auditor attention.  For example:

           * …

                   + Limitations on the group audit, for example, where the group engagement team's access to information or people may have been restricted.[20]

           * …

Amendments to ASA 705

42.               Existing paragraph A10 is amended to read as follows:

Examples of circumstances beyond the control of the entity include when:

           * …

           * The accounting records of a significant component for which further audit procedures are determined to be necessary for the purposes of the group audit have been seized indefinitely by governmental authorities.

Amendments to ASA