Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p16
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 46228–49312

auditor becomes aware that may be significant to the financial report of the entity or business unit, but of which management of the entity or business unit may be unaware.  If group management refuses to communicate the matter to management of the entity or business unit, the group auditor shall discuss the matter with those charged with governance of the group.  If the matter remains unresolved, the group auditor, subject to legal and professional confidentiality considerations, shall consider whether to advise the component auditor not to issue the auditor's report on the financial report of the entity or business unit until the matter is resolved.  (Ref: Para. A161–A162)

Communication with Those Charged with Governance of the Group

 1.                The group auditor shall communicate the following matters with those charged with governance of the group, in addition to those required by ASA 260[30] and other ASAs: (Ref: Para. A163)

         1.                 An overview of the work to be performed at the components of the group and the nature of the group auditor's planned involvement in the work to be performed by component auditors.  (Ref: Para. A164)

         2.                 Instances when the group auditor's review of the work of a component auditor gave rise to a concern about the quality of that component auditor's work, and how the group auditor addressed the concern.

         3.                 Any limitations on the scope of the group audit, for example, significant matters related to restrictions on access to people or information.

         4.                 Fraud or suspected fraud involving group management, component management, employees who have significant roles in the group's system of internal control or others when the fraud resulted in a material misstatement of the group financial report.

Communication of Identified Deficiencies in Internal Control

 1.                In applying ASA 265,[31] the group auditor shall determine whether any identified deficiencies in the group's system of internal control are required to be communicated to those charged with governance of the group or group management.  In making this determination, the group auditor shall consider deficiencies in internal control that have been identified by component auditors and communicated to the group auditor in accordance with paragraph 45(g).  (Ref: Para. A165)

Documentation

 1.                In accordance with ASA 230,[32] the audit documentation for a group audit engagement needs to be sufficient to enable an experienced auditor, having no previous connection with the audit, to understand the nature, timing and extent of audit procedures performed, the evidence obtained, and the conclusions reached with respect to significant 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