Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p10
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 27746–31309

been made aware of relevant ethical requirements that are applicable given the nature and circumstances of the group audit engagement; and

         2.                 Confirming whether the component auditors understand and will comply with the relevant ethical requirements, including those related to independence, that apply to the group audit engagement.

Engagement Resources

 1.                In applying ASA 220,[17] the group engagement partner shall: (Ref: Para. A61–A68)

         1.                 Determine that component auditors have the appropriate competence and capabilities, including sufficient time, to perform the assigned audit procedures at the component; and

         2.                 If information about the results of the monitoring and remediation process or external inspections related to the component auditor has been provided by the group auditor's firm or has otherwise been made available to the group engagement partner, determine the relevance of such information to the group auditor's determination in paragraph 26(a).

 2.                The group auditor shall obtain sufficient appropriate audit evidence relating to the work to be performed at the component without involving the component auditor if:

         1.                 The component auditor does not comply with the relevant ethical requirements, including those related to independence, that apply to the group audit engagement;[18] or (Ref: Para. A69–A70)

         2.                 The group engagement partner has serious concerns about the matters in paragraphs 23–26.  (Ref: Para. A71)

Engagement Performance

 1.                In applying ASA 220,[19] the group engagement partner shall take responsibility for the nature, timing and extent of direction and supervision of component auditors and the review of their work, taking into account: (Ref: Para. A72–A77)

         1.                 Areas of higher assessed risks of material misstatement of the group financial report, or significant risks identified in accordance with ASA 315; and

         2.                 Areas in the audit of the group financial report that involve significant judgement.

Communications with Component Auditors

 1.                The group auditor shall communicate with component auditors about their respective responsibilities and the group auditor's expectations, including an expectation that communications between the group auditor and component auditors take place at appropriate times throughout the group audit.  (Ref: Para. A78–A87)

Understanding the Group and Its Environment, the Applicable Financial Reporting Framework and the Group's System of Internal Control

 1.                In applying ASA 315,[20] the group auditor shall take responsibility for obtaining an understanding of the following: (Ref: Para. A88–A92)

         1.                 The group and its environment, including: (Ref: Para. A93–A95)

                 1.                  The group's organisational structure and its business model, including:

                         1.                    The locations in which the group has its operations or activities;

                         2.                    The nature of the 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