Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p11
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 30977–34417

group's operations or activities and the extent to which they are similar across the group; and

                         3.                    The extent to which the group's business model integrates the use of information technology (IT);

                 2.                Regulatory factors impacting the entities and business units in the group; and

                 3.              The measures used internally and externally to assess the financial performance of the entities or business units;

         2.                 The applicable financial reporting framework and the consistency of accounting policies and practices across the group; and

         3.                 The group's system of internal control, including:

                 1.                  The nature and extent of commonality of controls; (Ref: Para. A96–A99, A102)

                 2.                Whether, and if so, how, the group centralises activities relevant to financial reporting; (Ref: Para. A100–A102)

                 3.              The consolidation process used by the group, including sub-consolidations, if any, and consolidation adjustments; and

                 4.              How group management communicates significant matters that support the preparation of the group financial report and related financial reporting responsibilities in the information system and other components of the group's system of internal control to management of entities or business units.  (Ref: Para. A103–A105)

Considerations When Component Auditors Are Involved

 1.                The group auditor shall communicate to component auditors on a timely basis: (Ref: Para. A106)

         1.                 Matters that the group auditor determines to be relevant to the component auditor's design or performance of risk assessment procedures for purposes of the group audit;

         2.                 In applying ASA 550,[21] related party relationships or transactions identified by group management, and any other related parties of which the group auditor is aware, that are relevant to the work of the component auditor; and (Ref: Para. A107)

         3.                 In applying ASA 570,[22] events or conditions identified by group management or the group auditor that may cast significant doubt on the group's ability to continue as a going concern that are relevant to the work of the component auditor.

 2.                The group auditor shall request component auditors to communicate on a timely basis:

         1.                 Matters related to the financial information of the component that the component auditor determines to be relevant to the identification and assessment of the risks of material misstatement of the group financial report, whether due to fraud or error;

         2.                 Related party relationships not previously identified by group management or the group auditor; and (Ref: Para. A107)

         3.                 Any events or conditions identified by the component auditor that may cast significant doubt on the group's ability to continue as a going concern.

Identifying and Assessing the Risks of Material Misstatement

 1.                In applying ASA 315,[23] based on the understanding obtained in paragraph 30, the group auditor shall take responsibility for the identification and assessment of the risks of material misstatement of the group financial report,