Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p14
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 40315–43752

with laws or regulations;

         5.                 Corrected and uncorrected misstatements of the component financial information identified by the component auditor and that are above the threshold communicated by the group auditor in accordance with paragraph 36; (Ref: Para. A145)

         6.                  Indicators of possible management bias;

         7.                 Description of any deficiencies in the system of internal control identified in connection with the audit procedures performed;

         8.                 Fraud or suspected fraud involving component management, employees who have significant roles in the group's system of internal control at the component or others where the fraud resulted in a material misstatement of the component financial information;

         9.                  Other significant matters that the component auditor communicated or expects to communicate to component management or those charged with governance of the component;

        10.                  Any other matters that may be relevant to the group audit, or that the component auditor determines are appropriate to draw to the attention of the group auditor, including exceptions noted in the written representations that the component auditor requested from component management; and

        11.                 The component auditor's overall findings or conclusions.  (Ref: Para. A146)

 2.                The group auditor shall:

         1.                 Discuss significant matters arising from communications with the component auditor, including those in accordance with paragraph 45, with the component auditor, component management or group management, as appropriate; and

         2.                 Evaluate whether communications with the component auditor are adequate for the group auditor's purposes.  If such communications are not adequate for the group auditor's purposes, the group auditor shall consider the implications for the group audit.  (Ref: Para. A147)

 3.                The group auditor shall determine whether, and the extent to which, it is necessary to review additional component auditor audit documentation.  In making this determination, the group auditor shall consider: (Ref: Para. A148–A149)

         1.                 The nature, timing and extent of the work performed by the component auditor;

         2.                 The competence and capabilities of the component auditor as determined in accordance with paragraph 26(a); and

         3.                 The direction and supervision of the component auditor and review of their work.

 4.                If the group auditor concludes that the work of the component auditor is not adequate for the group auditor's purposes, the group auditor shall determine what additional audit procedures are to be performed, and whether they are to be performed by a component auditor or by the group auditor.

Subsequent Events

 1.                In applying ASA 560,[28] the group auditor shall take responsibility for performing procedures, including, as appropriate, requesting component auditors to perform procedures, designed to identify events that may require adjustment of, or disclosure in, the group financial report.  (Ref: Para. A150)

Considerations When Component Auditors Are Involved

 1.                The group auditor shall request the component auditors to notify the group auditor if