Document ID: chunk:federal_register_of_legislation:F2017L01179:body:0:p7
Version: federal_register_of_legislation:F2017L01179
Segment Type: other
Provision Reference: 
Character Range: 18442–21578

group engagement partner, component auditors or other auditors performing work at components of a group for purposes other than the audit of the group financial report. [5]

29.               Existing Footnote 14 to existing paragraph A9 is amended to read as follows:

    See ASA 200, paragraph A4947.

30.               The heading above existing paragraph A60 is amended to read as follows:

    Communications to Management and with Those Charged With Governance (Ref: Para. 41-43)

31.               A new paragraph before existing A60 is inserted as follows:

    In some jurisdictions, law or regulation may restrict the auditor's communication of certain matters with management and those charged with governance. Law or regulation may specifically prohibit a communication, or other action, that might prejudice an investigation by an appropriate authority into an actual, or suspected, illegal act, including alerting the entity, for example, when the auditor is required to report the fraud to an appropriate authority pursuant to anti‑money laundering legislation. In these circumstances, the issues considered by the auditor may be complex and the auditor may consider it appropriate to obtain legal advice.

32.               The heading above existing paragraph A65 is amended to read as follows:

    Communications to Regulatory and Enforcement AuthoritiesReporting Fraud to an Appropriate Authority outside the Entity (Ref: Para. 4443)

33.               Existing paragraph A65 is amended as follows:

    ASA 250[6] provides further guidance with respect to the auditor's determination of whether reporting identified or suspected non-compliance with laws or regulations to an appropriate authority outside the entity is required or appropriate in the circumstances, including consideration of the auditor's duty of confidentiality. The auditor's professional duty to maintain the confidentiality of client information may preclude reporting fraud to a party outside the client entity.  However, the auditor's legal responsibilities vary by country and, in certain circumstances, the duty of confidentiality may be overridden by statute, the law or courts of law.  In some countries, the auditor of a financial institution has a statutory duty to report the occurrence of fraud to supervisory authorities.  Also, in some countries the auditor has a duty to report misstatements to authorities in those cases where management and those charged with governance fail to take corrective action.

34.               Existing paragraph A66 is amended to read as follows:

    The determination required by paragraph 44 may involve complex considerations and professional judgements. Accordingly, tThe auditor may consider consulting internally (e.g., within the firm or a network firm) or on a confidential basis with a regulator or professional body (unless doing so is prohibited by law or regulation or would breach the duty of confidentiality). The auditor may also consider it appropriate to obtaining legal advice to understand the auditor's options and the professional or legal implications of taking any particular