Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p54
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 155039–158083

paragraph 48; or

           * There are any concerns about the component auditor's competence or capabilities.

Reviewing Additional Component Auditor Audit Documentation (Ref: Para. 47)

 1.       Paragraph A75 provides guidance for the group auditor in tailoring the nature, timing and extent of the direction and supervision of the component auditor, and the review of their work, based on the facts and circumstances of the group audit and other matters (e.g., the assessed risks of material misstatement of the group financial report).  The group auditor's consideration in accordance with paragraph 47(c) also may be affected by the following matters relevant to the group auditor's ongoing involvement in the work of the component auditor:

           * Communications from the component auditor, including those in accordance with paragraph 45 of this ASA; and

           * The review of component auditor audit documentation by the group auditor during the course of the group audit (e.g., to fulfill the requirements of paragraphs 34, 42 and 43) or by the group engagement partner in accordance with paragraph 31 of ASA 220.

 1.       Other factors that may affect the group auditor's determination about whether, and the extent to which, it is necessary to review additional component auditor audit documentation in the circumstances include:

           * The degree to which the component auditor was involved in risk assessment procedures and in the identification and assessment of the risks of material misstatement of the group financial report;

           * The significant judgements made by, and the findings or conclusions of, the component auditor about matters that are material to the group financial report;

           * The competence and capabilities of more experienced engagement team members from the component auditor responsible for reviewing the work of less experienced individuals; and

           * Whether the component auditor and group auditor are subject to common policies or procedures for review of audit documentation.

Subsequent Events (Ref: Para. 49–50)

 1.       The group auditor may:

           * Request a component auditor to perform subsequent events procedures to assist the group auditor to identify events that occur between the dates of the financial information of the components and the date of the auditor's report on the group financial report.

           * Perform procedures to cover the period between the date of communication of subsequent events by the component auditor and the date of the auditor's report on the group financial report.

Evaluating the Sufficiency and Appropriateness of Audit Evidence Obtained

Sufficiency and Appropriateness of Audit Evidence (Ref: Para. 51)

 1.       The audit of a group financial report is a cumulative and iterative process.  As the group auditor performs planned audit procedures, the audit evidence obtained may cause the group auditor to modify the nature, timing or extent of other planned audit procedures as information