Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p8
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 21774–25106

common control or common management; or

                 3.              The aggregation of the financial information of entities or business units such as branches or divisions.

        12.                  Group management – Management responsible for the preparation of the group financial report.

        13.              Group performance materiality – Performance materiality [12] in relation to the group financial report as a whole, as determined by the group auditor.

 2.                Reference in this ASA to "the applicable financial reporting framework" means the financial reporting framework that applies to the group financial report.

Requirements

Leadership Responsibilities for Managing and Achieving Quality on a Group Audit

 1.                In applying ASA 220,[13] the group engagement partner is required to take overall responsibility for managing and achieving quality on the group audit engagement.  In doing so, the group engagement partner shall: (Ref: Para. A29–A30)

         1.                 Take responsibility for creating an environment for the group audit engagement that emphasises the expected behaviour of engagement team members.  (Ref: Para. A31)

         2.                 Be sufficiently and appropriately involved throughout the group audit engagement, including in the work of component auditors, such that the group engagement partner has the basis for determining whether the significant judgements made, and the conclusions reached, are appropriate given the nature and circumstances of the group audit engagement.

Acceptance and Continuance

 1.                Before accepting or continuing the group audit engagement, the group engagement partner shall determine whether sufficient appropriate audit evidence can reasonably be expected to be obtained to provide a basis for forming an opinion on the group financial report.  (Ref: Para. A32–A35)

 2.                If, after the acceptance or continuance of the group audit engagement, the group engagement partner concludes that sufficient appropriate audit evidence cannot be obtained, the group engagement partner shall consider the possible effects on the group audit.  (Ref: Para. A36)

Terms of the Engagement

 1.                In applying ASA 210,[14] the group auditor shall obtain the agreement of group management that it acknowledges and understands its responsibility to provide the engagement team with: (Ref: Para. A37)

         1.                 Access to all information of which group management is aware that is relevant to the preparation of the group financial report such as records, documentation and other matters;

         2.                 Additional information that the engagement team may request from group management or component management for the purpose of the group audit; and

         3.                 Unrestricted access to persons within the group from whom the engagement team determines it necessary to obtain audit evidence.

Restrictions on Access to Information or People Outside the Control of Group Management

 1.                If the group engagement partner concludes that group management cannot provide the engagement team with access to information or unrestricted access to persons within the group due to restrictions that are outside the control of group