Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p17
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 49018–52351

matters arising during the group audit.  In applying ASA 230,[33] the group auditor shall include in the audit documentation: (Ref: Para. A166–A169, A179–A182)

         1.                 Significant matters related to restrictions on access to people or information within the group that were considered before deciding to accept or continue the engagement, or that arose subsequent to acceptance or continuance, and how such matters were addressed.

         2.                 The basis for the group auditor's determination of components for purposes of planning and performing the group audit.  (Ref: Para. A170)

         3.                 The basis for the determination of component performance materiality, and the threshold for communicating misstatements in the component financial information to the group auditor.

         4.                 The basis for the group auditor's determination that component auditors have the appropriate competence and capabilities, including sufficient time, to perform the assigned audit procedures at the components.  (Ref: Para. A171)

         5.                 Key elements of the understanding of the group's system of internal control in accordance with paragraph 30(c);

         6.                  The nature, timing and extent of the group auditor's direction and supervision of component auditors and the review of their work, including, as applicable, the group auditor's review of additional component auditor audit documentation in accordance with paragraph 47.  (Ref: Para. A172–A178)

         7.                 Matters related to communications with component auditors, including:

                 1.                  Matters, if any, related to fraud, related parties or going concern communicated in accordance with paragraph 32.

                 2.                Matters relevant to the group auditor's conclusion with regard to the group audit, in accordance with paragraph 45, including how the group auditor has addressed significant matters discussed with component auditors, component management or group management.

         8.                 The group auditor's evaluation of, and response to, findings or conclusions of the component auditors about matters that could have a material effect on the group financial report.

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Application and Other Explanatory Material

Scope of this ASA (Ref: Para. 1–2)

 1.              This ASA also deals with the special considerations for the group engagement partner or group auditor, as applicable, in applying the requirements and guidance in ASA 220, including for the direction and supervision of component auditors and the review of their work.

 2.              ASQM 1[34] addresses the engagements for which an engagement quality review is required to be performed.  ASQM 2[35] deals with the appointment and eligibility of the engagement quality reviewer and the engagement quality reviewer's responsibilities relating to performing and documenting an engagement quality review, including for a group audit.

 3.              An entity or business unit of a group may also prepare its own group financial report that incorporates the financial information of those entities or business units it encompasses (that is, a sub-group).  This ASA applies to an audit of the group financial report of