Document ID: chunk:federal_register_of_legislation:F2023C00341:reg:4:p40
Version: federal_register_of_legislation:F2023C00341
Segment Type: reg
Provision Reference: reg 4 (pt 40/42)
Character Range: 122171–125232

the communication to the component auditors, including those overseas.[#]

      * In the case of an audit or review of the financial information of the component, component materiality (and, if applicable, the materiality level or levels for particular classes of transactions, account balances or disclosures), and the threshold above which misstatements cannot be regarded as clearly trivial to the group financial report.

      * A list of related parties prepared by group management, and any other related parties that the group engagement team is aware of, and a request that the component auditor communicates on a timely basis to the group engagement team related parties not previously identified by group management or the group engagement team.

      * Work to be performed on intra‑group transactions and unrealised profits and intra‑group account balances.

      * Guidance on other statutory reporting responsibilities, for example reporting on group management's assertion on the effectiveness of internal control.

      * Where time lag between completion of the work on the financial information of the components and the group engagement team's conclusion on the group financial report is likely, specific instructions for a subsequent events review.

    Matters that are relevant to the conduct of the work of the component auditor:

      * The findings of the group engagement team's tests of controls of a processing system that is common for all or some components, and tests of controls to be performed by the component auditor.

      * Identified significant risks of material misstatement of the group financial report, due to fraud or error, that are relevant to the work of the component auditor, and a request that the component auditor communicates on a timely basis any other significant risks of material misstatement of the group financial report, due to fraud or error, identified in the component and the component auditor's response to such risks.

      * The findings of the internal audit function, based on work performed on controls at or relevant to components.

      * A request for timely communication of audit evidence obtained from performing work on the financial information of the components that contradicts the audit evidence on which the group engagement team originally based the risk assessment performed at group level.

      * A request for a written representation on component management's compliance with the applicable financial reporting framework, or a statement that differences between the accounting policies applied to the financial information of the component and those applied to the group financial report have been disclosed.

      * Matters to be documented by the component auditor.

    Other information

      * A request that the following be reported to the group engagement team on a timely basis:

              + Significant accounting, financial reporting and auditing matters, including accounting estimates and related judgements.

              + Matters relating