Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p15
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 43469–46469

designed to identify events that may require adjustment of, or disclosure in, the group financial report.  (Ref: Para. A150)

Considerations When Component Auditors Are Involved

 1.                The group auditor shall request the component auditors to notify the group auditor if they become aware of subsequent events that may require adjustment of, or disclosure in, the group financial report.  (Ref: Para. A150)

Evaluating the Sufficiency and Appropriateness of Audit Evidence Obtained

 1.                In applying ASA 330,[29] the group auditor shall evaluate whether sufficient appropriate audit evidence has been obtained from the audit procedures performed, including from the work performed by component auditors, on which to base the group audit opinion.  (Ref: Para. A151–A155)

 2.                The group engagement partner shall evaluate the effect on the group audit opinion of any uncorrected misstatements (whether identified by the group auditor or communicated by component auditors) and any instances when there has been an inability to obtain sufficient appropriate audit evidence.  (Ref: Para. A156)

Auditor's Report

 1.                The auditor's report on the group financial report shall not refer to a component auditor, unless required by law or regulation to include such reference.  If such reference is required by law or regulation, the auditor's report shall indicate that the reference does not diminish the group engagement partner's or the group engagement partner's firm's responsibility for the group audit opinion.  (Ref: Para. A157–A158)

Communication with Group Management and Those Charged with Governance of the Group

Communication with Group Management

 1.                The group auditor shall communicate with group management an overview of the planned scope and timing of the audit, including an overview of the work to be performed at components of the group.  (Ref: Para. A159)

 2.                If fraud has been identified by the group auditor or brought to its attention by a component auditor (see paragraph 45(h)), or information indicates that a fraud may exist, the group auditor shall communicate this on a timely basis to the appropriate level of group management in order to inform those with primary responsibility for the prevention and detection of fraud of matters relevant to their responsibilities.  (Ref: Para. A160)

 3.                A component auditor may be required by statute, regulation or other reasons to express an audit opinion on the financial report of an entity or business unit that forms part of the group.  In that case, the group auditor shall request group management to inform management of the entity or business unit of any matter of which the group 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