Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p22
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 63345–66445

unit that is part of the group.  When the group auditor considers the financial information of certain entities or business units together as a component or determines that a shared service centre is a component (see paragraphs A7‒A8), component management refers to the management that is responsible for the financial information or transaction processing that is subject to the audit procedures being performed in relation to that component.  In some circumstances, there may not be separate component management and group management may be directly responsible for the financial information or other activities of the component.

Group Engagement Partner (Ref: Para. 14(j))

 1.          [Deleted by the AUASB]

Group Financial Report (Ref: Para. 2, 14(k))

 1.          The requirements for the preparation and presentation of the group financial report may be specified in the applicable financial reporting framework, which may therefore affect the determination of the financial information of entities or business units to be included in the group financial report.  For example, some frameworks require the preparation of a consolidated financial report when an entity (a parent entity) controls one or more other entities (e.g., subsidiaries) through majority ownership interest or other means.  In some cases, the applicable financial reporting framework includes separate requirements for, or may otherwise permit, the presentation of a combined financial report.  Examples of circumstances in which the presentation of a combined financial report may be permitted include entities that have no parent but are under common control or entities under common management.

 2.          The term "consolidation process" as used in this ASA is not intended to have the same meaning as "consolidation" or "consolidated financial report" as defined or described in financial reporting frameworks.  Rather, the term "consolidation process" refers more broadly to the process used to prepare a group financial report.

 3.          The detailed aspects of the consolidation process vary from one group to another, depending on the group's structure and information system, including the financial reporting process.  However, a consolidation process involves considerations such as the elimination of intra-group transactions and balances and, when applicable, implications of different reporting periods for entities or business units included in the group financial report.

Leadership Responsibilities for Managing and Achieving Quality on a Group Audit (Ref: Para. 11, 16)

 1.          It may not be possible or practical for the group engagement partner to solely deal with all requirements in ASA 220, particularly when the engagement team includes a large number of component auditors located in multiple locations.  In managing quality at the engagement level, ASA 220[43] permits the engagement partner to assign the design or performance of procedures, tasks or actions to other members of the engagement team to assist the engagement partner.  Accordingly, the group engagement partner