Document ID: chunk:federal_register_of_legislation:F2023C00341:reg:4:p16
Version: federal_register_of_legislation:F2023C00341
Segment Type: reg
Provision Reference: reg 4 (pt 16/42)
Character Range: 53476–56631

charged with governance of the group, group management, those charged with governance of the component, component management, component information, and the component auditors (including relevant audit documentation sought by the group engagement team); and

                   + Will be able to perform necessary work on the financial information of the components.

A12.         In the case of a continuing engagement, the group engagement team's ability to obtain sufficient appropriate audit evidence may be affected by significant changes, for example:

           * Changes in the group structure (for example, acquisitions, disposals, reorganisations, or changes in how the group financial reporting system is organised).

           * Changes in components' business activities that are significant to the group.

           * Changes in the composition of those charged with governance of the group, group management, or key management of significant components.

           * Concerns the group engagement team has with regard to the integrity and competence of group or component management.

           * Changes in group‑wide controls.

           * Changes in the applicable financial reporting framework.

Aus A12.1 Section 323B of the Corporations Act 2001 (the Act) requires the auditor of a controlled (component) entity to give the principal (group) auditor any information, explanation or assistance required under section 323A of the Act.

Expectation to Obtain Sufficient Appropriate Audit Evidence (Ref: Para. 13)

A13.         A group may consist only of components not considered significant components.  In these circumstances, the group engagement partner can reasonably expect to obtain sufficient appropriate audit evidence on which to base the group audit opinion if the group engagement team will be able to:

(a)                Perform the work on the financial information of some of these components; and

(b)                Be involved in the work performed by component auditors on the financial information of other components to the extent necessary to obtain sufficient appropriate audit evidence.

Access to Information (Ref: Para. 13)

A14.         The group engagement team's access to information may be restricted by circumstances that cannot be overcome by group management, for example laws relating to confidentiality and data privacy, or denial by the component auditor of access to relevant audit documentation sought by the group engagement team.  It may also be restricted by group management.

A15.         Where access to information is restricted by circumstances, the group engagement team may still be able to obtain sufficient appropriate audit evidence; however, this is less likely as the significance of the component increases.  For example, the group engagement team may not have access to those charged with governance, management, or the auditor (including relevant audit documentation sought by the group engagement team) of a component that is accounted for by the equity method of accounting.  If the component is not a significant component, and the group engagement team has a financial