Document ID: chunk:federal_register_of_legislation:F2022L00712:body:0:p12
Version: federal_register_of_legislation:F2022L00712
Segment Type: other
Provision Reference: 
Character Range: 32848–35987

counting at a remote location.

           * …

Amendments to ASA 550

34.               Existing paragraph A13 is amended to read as follows:

In the context of a group audit, ASA 600 requires the group auditorengagement team to request component auditors to communicate on a timely basis related party relationships not previously identified by group management or the group auditor provide each component auditor with a list of related parties prepared by group management and any other related parties of which the group engagement team is aware.[19] Where the entity is a component within a group, this Such information provides a useful basis for the group auditor's enquiries of management regarding the identity of the entity's related parties.

35.               Existing paragraph A38 is amended to read as follows:

In evaluating the business rationale of a significant related party transaction outside the entity's normal course of business, the auditor may consider the following:

           * Whether the transaction:

                   + Is overly complex (for example, it may involve multiple related parties within a consolidated group).

                   + …

Amendments to ASA 610

36.               Existing paragraph A16 is amended to read as follows:

Examples of work of the internal audit function that can be used by the external auditor include the following:

           * …

           * In some circumstances, audits or reviews of the financial information of subsidiaries that are not significant components to the group (where this does not conflict with the requirements of ASA 600).[20]

Amendments to ASA 700

37.               Existing paragraph 39 is amended to read as follows:

The Auditor's Responsibilities for the Audit of the Financial Report section of the auditor's report shall further: (Ref: Para. A50)

         (a)  …

         (c)  When ASA 60017 applies, further describe the auditor's responsibilities in a group audit engagement by stating that:

(i)                 The auditor's responsibilities are to plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business unitsactivities within the group as a basis for formingto express an opinion on the group financial report;

(ii)               The auditor is responsible for the direction, supervision and reviewperformance of the audit work performed for purposes of the group audit; and

(iii)             The auditor remains solely responsible for the auditor's opinion.[18]

38.               Existing paragraph A38 is amended to read as follows:

In group audits for whichwhen there are multiple sources of relevant ethical requirements, including those pertaining to independence, the reference in the auditor's report to the jurisdiction ordinarily relates to the relevant ethical requirements that are applicable to the group auditorengagement team.  This is because, in a group audit, component auditors are also subject to ethical requirements that are relevant to the group audit.[28]

39.               Existing paragraph A39 is amended