Document ID: chunk:federal_register_of_legislation:F2023C01128:reg:17:p8
Version: federal_register_of_legislation:F2023C01128
Segment Type: reg
Provision Reference: reg 17 (pt 8/25)
Character Range: 28016–31091

legally identified responsibilities that differ from those of the governing body.

A3.             Such diversity means that it is not possible for this Auditing Standard to specify for all audits the person(s) with whom the auditor is to communicate particular matters.  Also, in some cases, the appropriate person(s) with whom to communicate may not be clearly identifiable from the applicable legal framework or other engagement circumstances, for example, entities where the governance structure is not formally defined, such as some owner‑managed entities, some not‑for‑profit organisations, and some public sector entities.  In such cases, the auditor may need to discuss and agree with the engaging party the relevant person(s) with whom to communicate.  In deciding with whom to communicate, the auditor's understanding of an entity's governance structure and processes obtained in accordance with ASA 315[4] is relevant.  The appropriate person(s) with whom to communicate may vary depending on the matter to be communicated.

A4.             ASA 600 includes specific matters to be communicated by the group auditors with those charged with governance of the group.[5] The matters communicated may include those brought to the attention of the group auditor by component auditors that the group auditor judges to be significant to the responsibilities of those charged with governance of the group. Component auditors also may communicate matters to those charged with governance of the component.[6] In those circumstances, the appropriate person(s) with whom the component auditor communicates depends on the engagement circumstances and the matter to be communicated.  In some cases, a number of entities or business units may be conducting the same businesses within the same system of internal control and using the same accounting practices.  Where those charged with governance of those entities or business units are the same (e.g., common board of directors), duplication may be avoided by dealing with these entities or business units concurrently for the purpose of communication.

Communication with a Subgroup of Those Charged with Governance (Ref: Para. 12)

A5.             When considering communicating with a subgroup of those charged with governance, the auditor may take into account such matters as:

           * The respective responsibilities of the subgroup and the governing body.

           * The nature of the matter to be communicated.

           * Relevant legal or regulatory requirements.

           * Whether the subgroup has the authority to take action in relation to the information communicated, and can provide further information and explanations the auditor may need.

A6.             When deciding whether there is also a need to communicate information, in full or in summary form, with the governing body, the auditor may be influenced by the auditor's assessment of how effectively and appropriately the subgroup communicates relevant information with the governing body.  The auditor may make explicit in agreeing the