Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p59
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 168966–172051

guidance about how to document the determination of the competence and capabilities of the engagement team, including component auditors.  For example, the confirmation obtained from the component auditor in accordance with paragraph 24 may include information about the component auditor's relevant industry experience.  The group auditor also may ask for confirmation that the component auditor has sufficient time to perform the assigned audit procedures.

Documentation of the Direction and Supervision of Component Auditors and the Review of Their Work (Ref: Para. 59(f))

 1.       As described in paragraph A75, the approach to direction, supervision and review in a group audit will be tailored by the group auditor based on the facts and circumstances of the engagement, and will generally include a combination of addressing the group auditor's firm policies or procedures and responses specific to the group audit.  Such policies or procedures may also describe or provide guidance about the documentation of the group auditor's direction and supervision of the engagement team and the review of their work.

 2.       ASA 300[96] requires the auditor to develop an audit plan that includes a description of the nature, timing and extent of the planned direction and supervision of engagement team members and the review of their work.  When component auditors are involved, the extent of such descriptions will often vary by component, recognising that the planned nature, timing and extent of direction and supervision of component auditors, and review of their work, may be influenced by the matters described in paragraph A51.

 3.       The group auditor's documentation of the direction and supervision of component auditors and the review of their work may include, for example:

           * Required communications with component auditors, including instructions issued and other confirmations required by this ASA.

           * The rationale for the selection of visits to component auditor sites, attendees at meetings and the nature of the matters discussed.

           * Matters discussed in meetings with component auditors or component management.

           * The rationale for the group auditor's determination of component auditor audit documentation selected for review.

           * Changes in the planned nature and extent of involvement in the work of component auditors, and the reasons why (e.g., assigning more experienced engagement team members in areas of the audit that are more complex or subjective than initially anticipated).

 1.       Paragraph 47 requires the group auditor to determine whether, and the extent to which it is necessary to review additional component auditor audit documentation.  Paragraphs A148–A149 provide guidance for the group auditor in making this determination.

 2.       Component auditor audit documentation ordinarily need not be replicated in the group auditor's audit file.  However, the group auditor may decide to summarise, replicate or retain copies of certain component auditor documentation in the