Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p35
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 100515–103623

may need to be taken, respectively, in relation to the nature, timing and extent of direction and supervision of those members of the engagement team, and the review of their work.  In particular, firm policies or procedures may require the firm or the group engagement partner to take different actions from those applicable to members of the engagement team within the firm or the network (e.g., in relation to the form, content and timing of communications with component auditors, including the use of group auditor instructions to component auditors).  ASA 220 provides examples of actions that may need to be taken in such circumstances.[66]

 4.          The nature, timing and extent of direction and supervision of component auditors and review of their work may be tailored based on the nature and circumstances of the engagement and, for example:

           * The assessed risks of material misstatement.  For example, if the group auditor has identified a component that includes a significant risk, an increase in the extent of direction and supervision of the component auditor and a more detailed review of the component auditor's audit documentation may be appropriate.

           * The competence and capabilities of the component auditors performing the audit work.  For example, if the group auditor has no previous experience working with a component auditor, the group auditor may communicate more detailed instructions, increase the frequency of discussions or other interactions with the component auditor, or assign more experienced individuals to oversee the component auditor as the work is performed.

           * The location of engagement team members, including the extent to which engagement team members are dispersed across multiple locations, including when service delivery centres are used.

           * Access to component auditor audit documentation.  For example, when law or regulation precludes component auditor audit documentation from being transferred out of the component auditor's jurisdiction, the group auditor may be able to review the audit documentation at the component auditor's location or remotely through the use of technology, when not prohibited by law or regulation (see also paragraphs A179–A180).

 1.          There are different ways in which the group engagement partner may take responsibility for directing and supervising component auditors and reviewing their work, for example:

           * Communications with component auditors throughout the course of the group audit, including communications required by this ASA.

           * Meetings or calls with component auditors to discuss identified and assessed risks, issues, findings and conclusions.

           * Reviews of the component auditor's audit documentation in person or remotely when permitted by law and regulation.

           * Participating in the closing or other key meetings between the component auditors and component management.

 1.          In applying ASA 220,[67] the group engagement partner is required to review audit documentation at appropriate points